The Biden administration has proposed tightening up enforcement of the federal laws that govern requiring mental health parity, a group of statutes that include the watershed Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 and the Consolidated Appropriations Act of 2021, which requires health plans to perform analyses that compare “nonquantitative treatment limits” (NQTLs) on mental and behavioral health benefits with those for medical and surgical services.
NQTLs include rules governing prior authorization, provider reimbursement rates and provider networks. Under the mental health parity laws, the NQTLs for mental and behavioral services are supposed to be no more restrictive than they are medical and surgical services.
If the administration’s new rules are finalized, they would require health plans to supply more detail in their NQTL comparative analyses. The analyses would have to include, for example, new information comparing claims denials for mental and behavioral health services to denials for medical and surgical services.
Health plans might also be facing new requirements to provide data that will allow regulators to compare their networks of mental and behavioral health providers to their networks of medical and surgical providers. One of the main gaps in mental health parity with respect to health insurance has been the shortage of in-network providers.
A July 2023 enforcement report listed several examples of NQTL shortcomings flagged by federal regulators:
Excluding coverage of residential treatment for mental health and substance use disorders when residential treatment for medical and surgical treatment was covered
Using employee assistance programs (EAPs) as gatekeepers to services for mental health and substance use disorder services when plan members didn’t have go through an EAP to use medical or surgical benefits
Excluding methadone as a treatment for opioid use disorder but covering it for medical and surgical conditions
Not covering inpatient substance use disorder treatment unless the member completes the entire course of treatment when no such requirement exists for medical or surgical treatment.
Optimize Your Healthcare Payments with Optum Financial
April 29th 2025Discover how Optum Financial is revolutionizing healthcare payments in our latest whitepaper. Learn how transitioning to electronic payments can reduce administrative costs, streamline claims processing and enhance security.
Read More
Conversations With Perry and Friends
April 14th 2025Perry Cohen, Pharm.D., a longtime member of the Managed Healthcare Executive editorial advisory board, is host of the Conversations with Perry and Friends podcast. His guest this episode is John Baackes, the former CEO of L.A. Care Health Plan.
Listen
Healthcare hasn't been a priority of the second Trump administration so far, panelists at the Asembia agreed. Medicaid may loom large, though, as the administration and congressional Republicans look for ways to slash government spending as a way of offsetting major tax cuts.
Read More
Breaking Down Health Plans, HSAs, AI With Paul Fronstin of EBRI
November 19th 2024Featured in this latest episode of Tuning In to the C-Suite podcast is Paul Fronstin, director of health benefits research at EBRI, who shed light on the evolving landscape of health benefits with editors of Managed Healthcare Executive.
Listen
What 5 Managed Care Trends Experts Say You’re Not Watching Closely Enough
April 29th 2025Managed Healthcare Executive asked several experts in healthcare and managed care to share the trends they think the industry is overlooking. From rising costs and data challenges to shifts in how care is delivered, these are the issues that could have a major impact — and deserve a closer look.
Read More