In 2021, Congress passed the “Consolidated Appropriations Act”. Which provides compliance regulations regarding the Mental Health Parity and Addiction Equity Act (MHPAEA). This requires employers to ensure that they provide equal coverage limits for mental health and medical benefits. Employers can face fines and potential lawsuits if they fail to prove equal offerings for the coverages.
It is important to note that the MHPAEA does not require employers to offer mental health coverage. However, coverage must be equal to or on the same base as medical benefits if offered. There can be no specific limitations. In the event the DOL requests a comparison analysis, employers will have 45 days to provide it.
Our team of HR professionals would even recommend employers have their own due diligence process and not just assume insurance providers automatically ensure compliance with these new regulations. One way Solutions At Work can ensure compliance for your business is by performing an annual audit of benefits offered. This would include us verifying the coverage to ensure compliance. We then would also suggest implementing a committee that regularly reviews coverage updates and confirms the offerings as equal. Taking these necessary steps allows employers like you to have the recent review information “at the ready” in the event an audit is requested.
Contact one of our experts today at 775-828-7420 or firstname.lastname@example.org