HHS Issues FAQs on the Consolidated Appropriations Act, 2021, Amendments to the Mental Health Parity and Addiction Equity
Act of 2008
On April 2, 2021, the Departments of Labor, Treasury and Health and Human Services (the Departments) jointly issued FAQs regarding the amendments to the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) made by the Consolidated Appropriations Act, 2021, enacted December 27, 2020 (CAA). The FAQs are written in an easy-to-read manner and simply confirm the information reflected in the CAA.
FAQ 1 confirms that as of February 10, 2021, plans and issuers should be prepared to make the comparative analysis available to the Departments. FAQ 2 provides helpful information regarding the Department of Labor MHPAEA Compliance Tool that can be used to determine whether the mental health and substance abuse benefits have parity with major medical benefits. FAQ 2 also provides detailed information regarding the required content of the written analysis, which we recommend be carefully reviewed in conjunction with FAQ 3 addressing the circumstances under which the comparative analysis may be deemed insufficient by the Departments.
Compliance with the MHPAEA, as amended by the CAA, is important because the Departments may take enforcement action due to violations, which includes the imposition of costly penalties and possible monetary relief for participants and beneficiaries. In this regard, please review information regarding 2020 MHPAEA enforcement actions.
Download our full Advisor for more detail on the FAQs.