DOL Issues Mental Health Parity Implementation Clarification

The Department of Labor (DOL) issued an important clarification to the mental health parity regulations strongly advocated for by many in the industry that will provide the critical flexibility needed to avoid making major changes in benefits or cost-sharing to comply with the interim final regulations.

The clarification, issued today in the form of a DOL "Frequently Asked Question" (FAQ), should permit plans to divide the outpatient classification established by the parity regulation into professional and non-professional services which will solve the most urgent “testing” issue identified by plans.Problems with the way the regulations were drafted would have required insurers to make changes that either would have increased premiums significantly or required major benefit restructuring. In addition, these changes could have caused a loss of grandfather status.
The welcome clarification impacts the scheduled compliance of the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) Interim Final Regulations for new and renewing groups as of July 1, 2010.