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Date: Friday, December 19, 1997
FOR IMMEDIATE RELEASE
Contact: HCFA Press Office (202) 690-6145

The Department of Health and Human Services today took an important and positive step toward ending discrimination on the basis of mental illness by publishing final rules to guide group health plans as they meet their Congressionally mandated obligations under the Mental Health Parity Act of 1996 (MPHA). The law, which takes effect January 1, 1998,requires health plans, such as those sponsored by employers, to provide the same annual and lifetime spending caps for mental health benefits as they do for medical and surgical benefits.

"Access to mental health benefits is important," said HHS Secretary Donna Shalala. "We believe this new law is a balanced, sensible approach. With these regulations we hope to move one step closer to ending discrimination against those who suffer from mental disorders."

Employers with fewer than 50 workers are exempt from the new parity law. If, after implementing parity for at least 6 months, a plan experiences an increase in costs by 1 percent or more due to complying with MHPA, the plan will be exempt from parity provisions. However, it is expected that most plans' costs will not exceed 1 percent. Individuals will be notified at least 30 days prior to the effective date, if their plan claims this exemption.

The law has a sunset provision, and unless Congress takes further action, it will not apply to benefits provided on or after September 30, 2001. The regulations are effective immediately, but are being published as interim rules with a 90-day period for public comment before they are made final. To ensure that plans have time to comply, enforcement of new provisions will be delayed until April 1, 1998 for plans which request such a delay. HHS shares jurisdiction over the MHPA with the Departments of Labor and Treasury.