On July 25, 2023, the trio of the Departments of Health and Human Services, Labor, and Treasury (“Tri-Agencies”) introduced broad new guidance on the Mental Health Parity and Addiction Equity Act (“MHPAEA”). This in-depth measure consisted of a Proposed Rule, a technical release proposing data requirements, an enforcement safe harbor, and the 2023 MHPAEA Comparative Analysis Report to Congress (“2023 Report to Congress”).
As reported by JD Supra, these changes come in response to long-standing critiques of mental health parity regulation and are designed to bolster enforcement and compliance with MHPAEA, whose objective is to prevent group health plans and health insurance issuers that provide mental health and substance use disorder benefits from imposing less favorable limitations than those applied to medical and surgical benefits.
Some core components of this new breadth of guidance are notably: the Proposed Rule, the technical release, the enforcement safe harbor, and the 2023 Report to Congress. The Tri-Agencies are seeking comments on these changes until October 2.
- The Proposed Rule aims to clarify MHPAEA’s requirements and improve compliance by requiring plans to disclose how they are achieving parity between mental health and substance use disorder benefits and medical/surgical benefits.
- The technical release proposes new data requirements, seeking more granular detail on how entities are complying with the requirements of MHPAEA.
- The enforcement safe harbor allows entities that establish and maintain effective compliance programs the opportunity to avoid certain enforcement actions.
- The 2023 Report to Congress reveals years-long comprehensive studies on the ongoing struggles and advancements toward mental health parity in the U.S.
As the deadline for feedback on the recently proposed changes approaches, legal professionals are encouraged to review the updated measures and their potential consequences. Ensuring the comprehensive comprehension and application of MHPAEA’s requirements is crucial for enterprises offering mental health and substance use disorder benefits. It is hoped that this serve as a step closer towards achieving full mental health parity, benefiting not only the recipients of these benefits but also contributing to societal wellbeing broadly.