On March 18, 2021, the U.S. Senate confirmed Xavier Becerra, a longtime proponent of mental health parity laws, as the new Secretary of the Department of Health and Human Services (“HHS”). Becerra’s nomination was supported by Mental Health America (“MHA”) in a letter to the Senate Finance Committee on February 22 of this year and commended by the National Alliance on Mental Illness (“NAMI”). Becerra’s confirmation presents an opportunity for individuals and employers seeking to ensure mental health coverage for themselves and their employees covered under employer health plans.
Becerra earned a reputation as a proponent of mental health parity because of his efforts as California’s Attorney General to hold insurers accountable for compliance with applicable federal and state mental health parity laws. Indeed, as AG of California, Becerra issued letters to California’s four largest insurers requesting information demonstrating the plans’ compliance with the relevant laws. Senator Chris Murphy of Connecticut raised the issue directly with Becerra at his confirmation hearing before voting to confirm.
On the federal level, the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (“MHPAEA”) is a federal law that generally prevents insurers that provide mental health or substance use disorder (“MH/SUD”) benefits from imposing less favorable benefit limitations on those benefits than on medical or surgical benefits. Although there are some exceptions to the scope of the law, it is widely applicable to group and individual health insurance plans, but beneficiaries under such plans continue to face challenges in securing parity.
As a practical matter, the manner in which plans provide for beneficiaries’ mental health care can create major barriers to wellness, ultimately affecting not only beneficiaries, but also affecting the workplace. In fact, MHA has noted that Employee Assistant Programs (“EAPs”) can result in a $3 to $10 return on investment for each dollar spent. However, successful employer mental health initiatives require compliance by plans, and health plans and third-party administrators must comply with the law in order for employers to realize the benefits of the law.
How Frier Levitt can help.
Frier Levitt attorneys have substantial and profound experience in matters of healthcare regulation and compliance and can assist employers and plans to ensure compliance with the MHPAEA and concomitant State laws and regulations. Additionally, Frier Levitt’s experienced litigators assist employers and beneficiaries with potential legal claims arising from a failure to comply with the law. Contact Frier Levitt today to learn more.
