Printer-Friendly Version

Archived News Release--Caution: information may be out of date.

OPA Press Release: Federal Rules Provide for Parity in Mental Health Benefits [12/19/1997]

For more information call: (202) 219-8211

Millions of Americans will have important new protections for mental health benefits under interim regulations announced today by the U.S. Departments of Labor, Health and Human Services and Treasury.

The regulations provide guidance to help employees and their families understand their new rights under the Mental Health Parity Act (MHPA) and to assist employers, plans and insurance companies in complying with MHPA. The new law is an important step toward ending discrimination on the basis of mental illness. The law exempts employers with fewer than 51 employees from its requirements.

"Tearing down the walls of benefits discrimination for families coping with mental illness is important for millions of Americans," said Labor Secretary Alexis M. Herman. "The Administration is working hard to ensure that workers and their families have more equitable health coverage for mental illnesses, while keeping this coverage affordable."

The law, signed by President Clinton on Sept. 26, 1996, is designed to provide for parity in dollar limits for mental health benefits and medical/surgical benefits. This means that group health plans and group health insurance cannot have annual or lifetime dollar limits on mental health benefits that are lower than any limits on medical/surgical benefits. However, MHPA does not require plans to offer mental health benefits.

If after implementing parity for at least 6 months, a plan experiences an increase in costs by one percent or more due to complying with MHPA, the plan may claim an exemption from the parity provisions. However, it is the department's firm belief that most plans' costs will not exceed 1 percent. Individuals will know if their plan is claiming this exemption, because they, along with the federal government, will be notified at least 30 days prior to the effective date of the exemption.

These interim final regulations are effective for plan years beginning Jan. 1, 1998.

The Labor Department also is making available today through its publication hotline (1-800-998-7542) a supplement to its booklet "Questions and Answers: Recent Changes in Health Care Law." This supplement provides an overview of the new MHPA provisions and answers to the most frequently-asked questions.

Unless further Congressional action is taken, MHPA sunsets; the MHPA provisions will not apply to benefits provided on or after September 30, 2001.

Public comments are requested on the interim final regulations to assist in developing final rules. Comments or requests for a hearing should be submitted in writing to the U.S. Department of Labor, Pension and Welfare Benefits Administration, 200 Constitution Avenue, NW, Room N-5669, Washington, DC 20210, Attention: MHPA comments.

The interim final regulations, the Question and Answer booklet, and the supplement are also available at the Department's website at http://www.dol.gov/pwba/.

Archived News Release--Caution: information may be out of date.