Mental Health Parity Final Rule (MHPAEA) Under Review by Agencies
Attention HR pros and benefit brokers! Portions of the Mental Health Parity Rule (MHPAEA) are under review by the agencies overseeing it. It’s shaping up to be an important compliance update.
There’s an ongoing court case about the Mental Health Parity and Addiction Equity Act (MHPAEA). The Departments of Health and Human Services, Treasury, and Labor—who are responsible for enforcing this law—have filed a Motion with the court to pause the case. The agencies requested time to finish developing a new policy that would temporarily stop enforcement of certain MHPAEA rules.
Remember, stating intent in a court motion does not remove compliance obligations. It only gives a sign as to the agencies’ possible intended future actions. Within the Motion, the government reveals its intent to reexamining portions of the MHPAEA, leaving HR professionals and benefit brokers with questions about the road ahead. Here’s what you need to know (and how it affects your business).
What Is the Mental Health Parity Rule?
The Mental Health Parity Rule ensures that mental health and substance use disorder benefits are not more restrictive than physical health benefits offered under group health plans and insurers. This means plans must offer equal coverage and access, whether it’s for therapy sessions or a physical doctor’s visit.
The latest version of the rule (“MHPAEA Final Rule”), created in 2024, introduced stricter enforcement measures and documentation requirements for employers and insurers (89 FR 77586). But now, the government agencies overseeing the rule (including the U.S. Departments of Labor, Health and Human Services, and the Treasury) are reevaluating its implementation and enforcement.
Why Is It Under Review?
Government agencies have said in a Motion, submitted to the U.S. District Court of Columbia by the agencies on May 9, 2025, they’re reconsidering some portions of the MHPAEA Final Rule. They’ve even stated they intend to issue a non-enforcement policy for certain parts it that were to take effect in 2025 and 2026.
The key takeaway for HR professionals is that the Motion’s discussion of a non-enforcement policy is just that – a proposed discussion, and it doesn’t revoke your obligation to follow the MHPAEA. This is because the MHPAEA Final Rule has been entered into the Federal Register as an enforceable regulation. Employers must still ensure parity in mental health and physical health benefits.
For more information on MHPAEA enforcement and how court motions and orders may now be providing more information than what we were used to in the past, please see “HHS Workforce Reduction: What It Means for HIPAA and ERISA Compliance” and “Executive Summary on Chevron.”
What Does This Mean for Employers?
Here’s how this review could affect your business and why now is the time to act:
- Documentation Changes
The MHPAEA Final Rule update introduced extra documentation requirements for plans to prove compliance. Ensure the group health plan follows the MHPAEA.
- Compliance Risks
Even with parts of the MHPAEA Final Rule under review, audits or penalties for noncompliance are still possible. It’s better to focus on ensuring your mental health benefits follow the MHPAEA now to avoid risks later.
- Plan Adjustments
This review is your opportunity to revisit your current benefit packages and align them with MHPAEA standards (and employee needs).
What Should HR Professionals Do Now?
While the review is ongoing, there are three action steps to take now to stay ahead of compliance changes:
- Review Your Current Benefits Plans:
Make sure your mental health benefits meet MHPAEA parity requirements. Check for any gaps where benefits for mental health might be more restrictive than those offered for physical health.
- Stay Educated on Updates:
Subscribe to trusted compliance resources (like ComplianceDashboard!) and track updates from government agencies. Ensure you’re informed as new guidance is released.
- Lean on Technology to Simplify Compliance:
Tools like the ComplianceDashboard create customized compliance calendars and send proactive email reminders. This can save time and make your compliance efforts more organized.
Why You Should Act Now
Uncertainty over the future of the MHPAEA Final Rule is no excuse for noncompliance. With mental health becoming a critical focus for both employees and regulators, being proactive is your safest bet. Not only will you reduce compliance risks, but you’ll also build a better benefits program that supports employee wellbeing.
