The Parity Enforcement Act of 2024 strengthens enforcement of mental health parity laws by holding service providers, such as third-party administrators and managed behavioral health organizations, directly liable when they cause or contribute to violations of mental health and substance use disorder coverage requirements. Currently, only health insurance companies and plan sponsors face penalties for parity violations, leaving service providers with limited accountability. The bill amends three federal healthcare laws—the Public Health Service Act, the Employee Retirement Income Security Act, and the Internal Revenue Code—to extend liability and enforcement authority to these service providers, while giving federal regulators discretion to determine how liability is divided among all parties involved. The law takes effect one year after enactment for plan years beginning after that date. This legislation aims to close enforcement gaps and ensure that insurance plans provide mental health benefits on par with physical health benefits.
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