This bill strengthens enforcement of mental health parity laws by allowing the federal government to impose civil monetary penalties on health insurance plans and administrators that violate requirements to provide equal coverage for mental health and substance use disorder treatments compared to medical and surgical benefits. Currently, federal law requires parity in these benefits, but enforcement tools are limited. The legislation expands who can be penalized to include plan sponsors, service providers, and plan administrators, not just plan sponsors alone. The bill allocates thirty million dollars annually from 2027 through 2031 to the Employee Benefits Security Administration to enforce these parity requirements. The new penalties take effect one year after the law is signed, applying to group health plans in plan years beginning after that date.
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