In a recent statement, the U.S. Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury announced a reconsideration of the 2024 mental health parity regulations under the Mental Health Parity and Addiction Equity Act (MHPAEA). This decision comes in response to ongoing litigation questioning the validity of these regulations, which were intended to expand compliance obligations and improve mental health care access.
The 2024 regulations aimed to enhance the 2013 MHPAEA standards by introducing new requirements for evaluating outcomes data and implementing a ‘meaningful benefit requirement.’ Critics argue that these provisions function as an unauthorized benefits mandate, leading to the current legal challenges.
The agencies have requested that the court pause the lawsuit while they review the regulations, indicating a willingness to amend or rescind certain provisions. As part of this process, they will not enforce the new regulations or initiate enforcement actions for compliance failures occurring before a final decision is reached, plus an additional 18 months. This relief pertains to the new aspects of the 2024 regulations, while existing statutory obligations of the MHPAEA, including the comparative analysis requirement established by the Consolidated Appropriations Act (CAA) of 2021, will remain in effect.
This nonenforcement policy is expected to alleviate the burden on plan sponsors and administrators who have struggled to comply with the recent requirements. The agencies’ reconsideration is also aligned with a presidential directive to review federal regulations that may not serve the national interest.
This announcement marks a significant shift in the regulatory landscape for mental health parity, with the potential to impact millions of individuals seeking equitable access to mental health services. Stakeholders await further developments as the agencies reassess the 2024 regulations.
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