An upcoming proposal from the Biden administration, expected to be finalized later in 2024, has prompted concern among employer advocates and insurance companies who believe it could increase costs and reduce the quality of employer-sponsored mental health coverage. This anticipated decision, which is geared towards prohibiting health plans from implementing coverage restrictions on mental health and substance use compared to medical and surgical benefits, forms part of a suite of initiatives aimed at improving parity in health coverage.
As indicated by the proposed rules, RIN 1210-AC11, the Departments of Labor, Health and Human Services, and the Treasury will mandate self-insured health plans and insurers to carry out meticulous evaluations to ensure their plans are in compliance with the Mental Health Parity and Addiction.
This proposal has been met with resistance from health plans who fear it will limit their ability to use prior authorizations. There is also concern about the potential cost implications, given that a recent study revealed a 53% increase in mental health costs following the outbreak of the COVID-19 pandemic.
For more comprehensive coverage of this development, interested parties can refer to the full article at Bloomberg Law.