A new federal rule is expected to expand mental health care access for 175 million Americans with private insurance by requiring most health plans to provide equal benefits for both mental and physical health.
Designed to make mental health care more accessible and affordable and assure fair compensation for mental health professionals, many of the rule’s provisions take effect January 1, 2025.
The Departments of Labor, Treasury, and Health and Human Services (HHS) issued this final rule building on the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA or Parity Act) on September 9, 2024.
The Parity Act prevents most health insurers from offering reduced mental health and substance abuse disorder benefits compared to medical and surgical benefits in group and individual health plans. It also adds additional protections against more restrictive treatment limitations for mental health and substance abuse disorders.
New tools offered by HHS will help states enforce these protections for millions of Medicaid beneficiaries in private Medicaid plans.
This new rule strengthens protections to make mental health and substance use benefits as accessible as physical health benefits, aiming to reduce costs and remove obstacles to care. Key components of the rule include:
Additionally, the Parity Act define keys terms in parity compliance, enhances parity protections, promotes equity, ensures meaningful coverage and network adequacy, and enforces penalties for non-compliance.
For more information on the Parity Act, contact your Moss Adams professional.