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The past decade has seen a startling drop in the provision of insurance benefits for psychiatric care. Whereas the real value of employer-provided insurance for general medical treatment decreased 7.2 percent from 1988 to 1997, benefits for the treatment of psychiatric disorders fell by a dramatic 54 percent during that time. It is likely that a substantial part of this decline is accounted for by reluctance on the part of insurers, health maintenance organizations, and managed-care companies to provide benefits for psychotherapeutic treatment, which was once the mainstay of psychiatric care. Insurers and managed-care companies routinely refuse to authorize payment
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