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Mental Health Benefits Update

Written by: Allison Grace

Article Overview: Private group health benefit plans that provide mental health and/or substance use disorder benefits as well as medical and surgical benefits, are now required by this Act to do so on an equivalent basis.

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Mental Health Benefits Update

Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) Effective for plan years beginning on or after October 3, 2009 (January 1, 2010 for calendar year plans)

Private group health benefit plans that provide mental health and/or substance use disorder benefits as well as medical and surgical benefits, are now required by this Act to do so on an equivalent basis. Several plan design requirements have been imposed on group health benefit plans that offer mental health and/or substance use disorder benefits including equity in cost sharing, treatment limitations, and coverage decisions requirements. The current mental health parity law requires parity for annual and lifetime limits on coverage, and this Act builds on those requirements.The Act contains an exception for small group health benefits plans and for increased costs, however, those exceptions are specific and narrow. The MHPAEA does not require employers to provide either mental health or substance use disorder benefits. As a result, plan sponsors may want to reconsider continuing to offer one or both of these types of benefits beyond the effective date of the MHPAEA.

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Home > Human-Resources > Allison Grace > Mental Health Benefits Update
Article Tags: addiction, calendar year, coverage decisions, effective date, exceptions, group health benefits, health benefit plans, health benefits plans, january 1, lifetime limits, mental health parity, plan sponsors, private group, small group, substance use

About the Author: Allison Grace
RSS for Allison's articles - Visit Allison's website

Allison Grace, CEBS, CCP, CMS, is President and Founder of Instant HR Solutions and a human resources professional with more than nineteen years of experience. As a consultant, Allison has worked with companies in various industries including hedge funds, technology, oil and gas development, recruiting and accounting. Combined with technical training and professional certifications, Allison’s practical experience includes working in all aspects of human resources to establish HR programs that support the strategic objectives of the business. Her extensive experience includes benefits, compensation, legal compliance, performance management, employee relations, recruiting and termination.

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