labor lawAdivision of labor law center

West Virginia employee benefit plans will continue to include mental health treatment coverage on a par with medical and surgical coverage thanks to the extension of the bill known as MHPA.

The bill is the Mental Health Parity Act. It has been extended to December 31 of 2007 after being signed into law by the President.

As the name suggests, it assures that all group health plans include a mental health component that is equal in coverage limits to their limits on corresponding medical/surgical treatment coverage.

The MHPA has been given new life five times through amendments, since its original expiration date of September 31, 2001. That was because the original bill, signed into law in 1996, included what is called a “sunset clause,” effectively causing it to expire unless extended.

The bill impacts the roughly 150 million workers who are covered by group health insurance plans. Before the MHPA, health plans could have ceilings on mental health treatment coverage that were much lower than those on medical and surgical treatment. For example, a plan might have a $100,000 yearly limit on medical and surgical procedures, but just $5,000 or $10,000 for mental health treatment. Under MHPA, that is against the law.

Some of what is included in mental health treatment coverage is:

Stays in rehabilitation facilities for drug and alcohol abuse problems.

Stays in psychiatric centers, or mental hospitals, for treatment of a wide variety of illnesses such as schizophrenia, depression, and post-traumatic stress disorder.

Visits to mental health professionals. These include licensed therapists, psychologists, and psychiatrists.

The Employee Benefit Security Administration (EBSA) is the enforcing federal agency. It was originally created in 1974 to oversee enforcement of the Employee retirement Income Security Act (ERISA) of 1974. Since then it has gained sub-cabinet level status and its mandate includes health care as well as pension oversight. The upgrade came in 2003. It is now under the auspices of an Assistant secretary of Labor. 

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