Agencies Announce Reconsideration and Nonenforcement of 2024 Mental Health Parity Regulations
In connection with litigation challenging the validity of 2024 regulations under the Mental Health Parity and Addiction Equity Act (MHPAEA), the DOL, HHS, and IRS (collectively “the Departments”) have announced that they are reconsidering the regulations, including whether to rescind or modify the provisions through future rulemaking. The 2024 regulations amended the 2013 MHPAEA regulations by expanding compliance obligations to include, among other things, extensive evaluation of outcomes data and adherence to a “meaningful benefit requirement,” that, according to the challengers, is effectively a benefits mandate that the agencies are not authorized to impose. Explaining that the Departments have asked the court to put the lawsuit on hold, the statement also provides that the 2024 regulations will not be enforced before a final decision in the litigation is reached, plus an additional 18 months.
Note that the enforcement relief applies only to those portions of the 2024 regulation that are new and not included in the 2013 regulations, and the statutory obligations of MHPAEA, as amended in 2021. In particular, under the CAA 2021 statutory requirements, plan sponsors must still prepare and maintain a non-quantitative treatment limitation (NQTL) comparative analysis for each health plan maintained by the sponsor, and must provide a copy of the analysis to plan participants or the Departments upon request. However, the increased requirements imposed by the 2024 rule, including the fiduciary certification, the “meaningful benefits” standard and the expanded new data-based standards for the comparative analysis are on pause.
The nonenforcement policy will be welcome news to plan sponsors and administrators that have faced challenges complying with the new 2024 requirements. However, while plan sponsors can pause efforts to comply with the new requirements imposed by the 2024 rule, plans should be cognizant of their continuing compliance obligations under the 2013 rules and the CAA 2021 statute, including the need to prepare and maintain a NQTL comparative analysis.
Please visit www.moreton.com/news-events/ for more information and to view other client alerts. This Client Alert was written by Carolyn Cox, who provides our clients with compliance services. For additional questions, please contact Carolyn at 801-715-7110 or [email protected].
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