Federal Agencies Announce Non-Enforcement of 2024 Mental Health Parity Rule

The Trump administration has announced it will suspend enforcement of the Biden-era 2024 Mental Health Parity and Addiction Equity Act (MHPAEA) rule, which was designed to improve access to mental health and substance use care under private insurance plans. This decision follows a legal challenge from the ERISA Industry Committee, representing large employers who argue the rule imposes onerous requirements and could negatively impact employee health benefits. The Departments of Labor, Health and Human Services, and Treasury have requested a court stay on litigation while they reconsider and potentially modify or rescind the rule, proposing to issue a non-enforcement policy covering plan years beginning in 2025 and 2026. The Biden-era rule aimed to address longstanding disparities in mental health care access, requiring health plans to regularly review provider networks and payment policies to ensure parity with physical health services. Critics of the rule, including employer groups, contend that compliance burdens could reduce available benefits, while supporters emphasize disparities such as higher out-of-network care and costs for mental health treatment. The outcome of this reconsideration will influence enforcement of parity provisions that affect millions of Americans with private health coverage.