MHPAEA

The Obama administration recently issued final regulations implementing the Paul Wellstone and Pete Domenici Mental Health Parity and Addition Equity Act of 2008 (the “MHPAEA”).  The regulations implement the MHPAEA’s prohibition against imposing limits on mental health and substance use disorder benefits that are more restrictive than the limits on medical and surgical benefits.  The final regulations largely preserve interim final regulations that have been in effect since July 1, 2010, with some clarifications that were announced previously in less formal guidance.

The final regulations, not surprisingly, require parity between medical/surgical benefits, on the one hand, and mental health/substance use disorder benefits, on the other, when both are provided under an employer’s major medical plan.  However, in determining whether the parity is achieved, employers will need to consider separate arrangements, such as employee assistance plans and wellness programs.  The failure to consider plans other than the major medical plan could result in noncompliance with the mental health parity rules. 

The penalty for failing to comply with the new requirements is an excise tax of $100 per day per affected participant.  In frequently asked questions that were issued with the final regulations, the Departments indicated that ensuring compliance through audits and other mechanisms is a high priority.
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