Update: Mental Health Parity and Addiction Equity Act
Imagine needing urgent care for your mental health or addiction, only to face endless roadblocks from your health insurance plan. That’s been the frustrating reality for many—until now.
Thanks to new updates to the Mental Health Parity and Addiction Equity Act, these barriers are starting to come down. On September 9, 2024, the U.S. Departments of Health and Human Services (HHS), Labor, and Treasury released new rules to ensure people with mental health conditions or substance use disorders (SUDs) aren’t facing more obstacles than they would for medical or surgical treatment.
Here’s how the changes could impact the care you or your loved ones need.
What Is the Parity Act?
The Mental Health Parity and Addiction Equity Act was enacted in 2008 and meant to ensure insurance companies cover mental health and addiction treatment—the same way they cover medical or surgical care.
Why Were New Parity Act Rules Released?
Despite the 2008 law, many people still face challenges like higher costs, more paperwork, or stricter requirements when seeking coverage for mental health or addiction treatment. The Biden-Harris administration has stepped in to ensure mental health and addiction care are treated fairly by insurance companies.
The new rules address these issues by enhancing protections, ensuring clearer guidelines, cutting red tape, and expanding equitable access to MH/SUD benefits. This includes fewer and less restrictive prior authorization requirements and other medical management techniques.
Why Are These Updates Important?
These changes will require health plans to prove they are not placing more limits on mental health and addiction treatment than on other types of medical care. Here are the major updates that will directly affect how insurance companies handle mental health and addiction treatment:
- Meaningful Benefits
Health insurance plans must ensure meaningful benefits for MH/SUD treatment, making care more accessible. Specifically, the rule requires plans to provide at least one core treatment (essential health care service) for each covered condition. - Network Adequacy
Health insurance plans must make it easier to find in-network mental health providers and ensure their networks have enough providers and facilities to provide timely care.
- Comparative Analyses
Health insurance plans must provide clear data showing their policies are fair and non-restrictive. - Data Collection and Evaluation
Health insurance plans must collect and evaluate data to address any material differences in access to MH/SUD benefits.
These changes generally apply to group health plans and group health insurance coverage beginning on or after January 1, 2025. For individual health insurance coverage, the requirements begin to apply on or after January 1, 2026.
Professional Treatment for Substance Use Disorder
These new rules bring hope to those facing mental health and substance use disorders. They ensure greater accountability for insurance plans, fewer delays in care, and better access to the high-quality treatment people need.
What You’ll Notice
- Easier access to addiction treatment services.
- Larger and more inclusive provider networks.
- Stricter oversight of health plans (reducing denials and care delays).
- Larger focus on whole-person health (ensuring MH/SUD treatment is prioritized equally).
If you or a loved one is struggling with a mental health or substance use disorder, contact Beach House for the treatment you need and the freedom you’ve been waiting for.