Amidst legal challenges, the current Trump administration indicated in a court filing that it will not enforce the mental health parity rule while it considers whether to rescind it. The U.S. Departments of Labor, Health and Human Services, and Treasury also issued a joint statement announcing that they would not pursue enforcement action concerning the rule for at least 18 months following a final decision in the litigation. Therefore, employers need not fear potential penalties for noncompliance with the rule, at least for the time being.
The Biden administration finalized the mental health parity rule last year, which requires health plans to cover mental health and addiction care at the same level as other types of medical care. The 2024 final rule expands the scope of the 2008 Mental Health Parity and Addiction Equity Act, which is designed to ensure that health plans cover mental health benefits to the same extent that they cover physical health benefits. Under the 2024 rule, health plans that provide inadequate coverage for mental health or substance use disorder care must comply by analyzing their provider networks, prior authorization policies, and out-of-network payment rates. As a result of their analysis, plans may be required to expand their network of mental health and substance use providers and/or reduce barriers for these providers to deliver care.
The ERISA Industry Committee (ERIC), an association of large employers, filed suit challenging the implementation of the 2024 rule in January 2025. They claim that the rule exceeds the agencies' jurisdictional authority and imposes an overly burdensome requirement on employers. ERIC praised the Trump administration for pausing and reconsidering what it characterizes as "wholly unworkable" rule requirements, stating that it had no choice but to pursue litigation to protect its employees' access to benefits. According to ERIC, expanded requirements and their associated costs might cause a reduction in mental health coverage.
However, other industry groups, such as the CEO Alliance for Mental Health, have been supportive of the move to require more equitable coverage of mental health treatment. Mental health has become more of an issue in the workplace, with significant numbers of employees suffering from mental health conditions such as stress, depression, and anxiety. Some employers have responded by offering mental health benefits, but many people facing these issues still face long waits to get care, or do not get care at all.
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