labor lawAdivision of labor law center

The policies regarding California employee benefits have no legal provision for mental health coverage per se. There are a considerable number of employers who include mental health coverage as a part of their group insurance, but there is also an equally large number who choose not to.

Even inpatient or outpatient mental health treatment in a hospital may or may not be a part of an employee’s health plan. But in case an employer does offer mental health coverage as a part of a group insurance plan, there are several laws governing it. The one that has proven to be the most important is the Mental Health Parity Act or MHPA. The Mental Health Parity Act requires that any group health insurance plan that funds mental health treatment, cover it at the same level as other medical treatments, including surgery.

The MHPA has undergone a total of five amendments since its enactment. It was passed in 1996 with a provision to expire on September 30, 2001. A number of extensions followed, and in February 2007 it was extended up to December 31, 2007. Considering the history of amendments and extensions every time the Mental Health Parity Act nears expiry, it would be a safe assumption that this law will remain in effect for quite some time to come. If it ever does expire, hopefully it will be replaced by a permanent regulation that makes up for its lack.

Employee benefit plans provide a lifeline to a large number of American citizens. The federal government has an agency to enforce the laws regarding employee benefits and pension plans. It is known as the Employee Benefits Security Administration, or EBSA. The number of workers covered under EBSA plans exceeds 150 million. The name itself suggests that agency handles as many violations of law concerning health care as pensions. 

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