Mental Health Parity Act Passes Congress As Part of Economic Stabilization Bill

Oct 8, 2008

The U.S. Congress recently passed the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act (“Mental Health Equity Act”) as part of the Emergency Economic Stabilization Act of 2008 (H.R. 1424).

While the primary focus of H.R. 1424 is economic stabilization, the Mental Health Equity Act amends the Employee Retirement Income Security Act of 1974 and Public Health Service Act to prohibit employer group health plans from adopting mental health treatment limitations, financial requirements, or out-of-network coverage limitations unless comparable limitations and requirements have been adopted for medical and surgical benefits.

The Mental Health Equity Act does not require coverage of all conditions listed in the Diagnostic and Statistical Manual of Mental Disorders. Exemptions to the parity requirements include employers with fewer than 50 workers. There also are special rules covering the enactment date relative to collective bargaining agreements.

The Mental Health Equity Act will become effective one year after H.R. 1424 is signed into law by the President.

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.

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