Potential Changes Coming to Mental Health Parity Requirements

In 2008, Congress passed the Mental Health Parity and Addiction Equity Act (MHPAEA) that required Insurers to cover mental health benefits in a way that is at least equal to what they cover physical health care benefits, if mental health benefits are offered. Recently, the Biden Administration released a proposed rule that would change what data would be evaluated as part of demonstrating compliance with MHPAEA. The regulation, if finalized as proposed, would take effect for the 2025 plan year in the group market and 2026 plan year for the individual market; the regulation also impacts Medicaid managed care and the Children’s Health Insurance Program (CHIP) but does not impact Medicare or Medicaid fee-for-service plans.