The recently enacted Emergency Economic Stabilization Act of 2008, generally referred to as the “financial bailout bill” contains some sweeping new provisions directing group health plans to offer mental health benefits at parity with medical and surgical benefits.
A Manufacturers Alliance/MAPI report, New Private Health Plan Requirements: Mental Health and Substance Abuse Parity Provisions Included in Financial Rescue Legislation (LAR-496e) provides an overview and explanation of the Mental Health Parity Act (MHPA).
Leslie D. Miller, MAPI senior attorney and report author, argues that it is highly likely that health plan sponsors will incur some increased costs in providing mental health and substance abuse benefits as a result of complying with the new MHPA provisions.
Employers may request a one-year exemption if additional cost projections are satisfied. An exemption is only available, however, after a plan has first made the changes to comply with the parity requirements and those changes have been in place for six months.
The report concludes that there is the possibility that when faced with the additional costs of providing mental health parity, rather than utilize the temporary exemption, some plan sponsors will instead choose to reduce the types of mental health conditions their plans cover.
The review offers a brief historical perspective of the legislation and provides detail as to its components.
