labor lawAdivision of labor law center

The president has recently signed a law extending the Mental Health Parity Act, or MHPA.  It is to continue through December 31, 2007.

The MHPA bill was originally signed into a law in 1996.  The “sunset clause” that was originally on the law stated that it would be in effect until September 31, 2001 unless amended.  Well, it is still active today because of the five times it was amended since that time.  The mental health parity act states that employer offered health insurance plans that provide mental health treatment coverage must cover it at the same rate as other treatments are covered.

Any California employee benefit plan that covers various treatments, including medical, have to  make sure that mental health coverage is not any less than other treatments.  Before the MHPA was passed in 1996, coverage for mental health could be significantly lower than the amount covered for medical treatments.  Surgery coverage rates should not be any higher than mental health coverage rates, either.  It is currently against the law to provide a high amount of coverage for other treatments and provide a low amount of mental health coverage under the same plan.

This law also applies to annual limits.  The annual limit of coverage for mental health treatments should never be lower than the annual limits on surgery or other medical treatments.

If a plan is in violation of the MHPA, the Employee Benefits security Administration (EBSA) will investigate.  The EBSA is in charge of enforcing the laws that govern any group health insurance plans.  They govern retirement security, pension, and welfare as well as employer provided health insurance plans.  They have been established since 1974, and have been enforcing these laws ever since that time.

Millions of employees across the United States are affected by the issues of benefits, especially health care.  The EBSA holds a great responsibility to ensure that these workers are taken care of within the guidelines of the law.

Last 10 posts by Amelia

• Colorado Reduces Minimum Wage in 2010 - November 20th, 2009
• New Law Expands FMLA and NDAA for Military Families - October 30th, 2009
• California Approves Exempt Salary Reduction - October 16th, 2009
• 3 New Illinois Laws - October 9th, 2009
• New Definition of Disability - September 25th, 2009
• E-Verify Regulations - September 18th, 2009
• New USERRA Regulations - September 2nd, 2009
• E-Verify News - August 26th, 2009
• New Tennessee Workers’ Compensation Law - August 19th, 2009
• Louisiana Minimum Wage - August 3rd, 2009