Mental Health Parity and Addiction Equity Act Compliance for Employer Health Plans

Summary

This practice note describes the impact of the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) (Pub. L. No. 110-343) on employer group health plans The MHPAEA generally prevents health care coverage from imposing less favorable terms for mental health or substance use disorder benefits than apply for medical and surgical benefits under the terms for the plan. This practice note has been updated for recent developments, including regulations proposed in 2023 that would overhaul the MHPAEA's rules regarding nonquantitative treatment limitations (NQTLs) and codify rules for the mandatory NQTL analyses and disclosure requirements imposed pursuant to the Consolidated Appropriations Act, 2021 (Pub. L. No. 116-260). The law applies to most health insurance coverage in the group and individual markets, but the focus here is on compliance for employer plans. State and local laws relating to mental health parity are beyond the scope of this practice note.