Sep 9, 2024
Finally: The Parity Final Rules Have Been Released!
Today, the Biden-Harris Administration released the decades long-anticipated rules to finally enforce the Mental Health Parity and Addiction Equity Act (Parity). The bi-partisan landmark legislation was passed in 2008, but for a variety of reasons has never been fully enforced, allowing insurance companies to avoid their responsibilities under the law and denying coverage to millions of Americans in need of treatment. NAATP CEO Marvin Ventrell said, “The issuance of the Final Rules is an historic win for SUD treatment providers and should arm us with the kind of solid backing long needed to implement and enforce fair reimbursement rates and claims.”
The 2008 law required that coverage for mental health and SUD must be similar to that of physical health conditions, which was designed to eliminate decades of discrimination against SUD and mental health conditions.
White House officials say the new rules reinforce that insurers can't use tools like prior authorization and standards determining out-of-network payment rates for mental health and SUD treatment that are more restrictive than for other types of care. The new rule provides additional transparency requirements and fines for insurers who do not comply with the law.
The Administration said the regulations would also mandate that insurers address material differences in access to care for mental health and substance use disorder care. The White House has pointed to a 2022 report to Congress from HHS, Labor and Treasury that found that not one of the 156 insurance plans and issuers studied followed requirements to measure their compliance with the 2008 law.
The new rule is likely to impact millions of Americans and comes as the nation faces a worsening SUD and mental health crisis. Most people with substance use disorder and mental health conditions don’t get treatment, according to many valid studies.
The rules will likely face significant backlash, and providers should prepare for that, as will NAATP on behalf of our members. We anticipate that a legal challenge will be initiated. However, senior administration officials said they are confident that they have written regulations that are consistent with applicable law.
NAATP congratulates the Biden-Harris Administration on their proposal. We believe following Congressional intent of the 2008 law is long overdue and that the proposed rule with take a giant step toward ending the discrimination of individuals with SUD or mental health conditions. NAATP is also grateful to its dedicated members who advocated for the Final Rule. As more information becomes available, we will keep our members advised.
