Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
A recent survey by Hewitt Associates confirms that companies who offer mental health and substance use disorder benefits have chosen to comply with the financial and treatment requirements under the MHPAEA rather than terminating such benefits, even in the fac
A recent survey by Hewitt Associates confirms that companies who offer mental health and substance use disorder benefits have chosen to comply with the financial and treatment requirements under the MHPAEA rather than terminating such benefits, even in the face of rising health care costs.
The Hewitt survey asked 70 Fortune 500 companies to explain their reaction to the MHPAEA rules. None of the companies surveyed terminated mental health and substance use disorder benefits, and instead chose to comply with the MHPAEA by amending their plan design to eliminate annual and lifetime maximums, equalize financial requirements such as co-pays and co-insurance and eliminate treatment limitations that were so pervasive under the Mental Health Parity Rules. Employers, it seems, now recognize that mental health is equally important as the physical health of their employee populations.
It remains to be seen how employers will react to the release of recent regulations. The regulations direct employers to perform rigorous evaluations of group health benefits to determine parity of financial requirements and treatment limitations. Clients will likely begin conversations with vendors and insurers well ahead of the traditional renewal and enrollment season in order to determine whether and how to comply with the regulations. For its part, the Hewitt survey anticipates that most employers will continue to comply with the MHPAEA rules in various ways even with the burden of additional administrative obligations.
Russell Chapman and Andrea Jackson co-authored this entry.