President signs expanded parity rules for mental health and substance abuse benefits

Expanded mental health and substance abuse parity rules have become law with the president's signature on the economic recovery package (HR 1424). Under the new provisions, a group health plan cannot impose more restrictive cost-sharing requirements (such as deductibles and copays) or treatment limits (including caps on hospital stays or outpatient visits) for mental health and substance abuse coverage than for medical and surgical benefits. The restrictions apply to in- and out-of-network benefits. The new provisions also extend current parity rules on annual or lifetime dollar limits to include substance abuse benefits. Employers with 50 or fewer employees aren't subject to the rules, and certain plans whose costs increase due to the new requirements will be able to request an exemption. The parity rules will take effect Jan. 1, 2010, for calendar-year plans.  (Select News, 3 Oct 2008)

• Full text of mental health parity provisions in HR 1424

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