Do all group health plans offering mental health benefits have to meet the parity requirements?
No. There are two exemptions from the parity requirements. The mental health parity requirements do not apply to small employers who have between 2 and 50 employees or to any group health plan whose costs increase one percent or more due to the application of the parity requirements. (State laws vary regarding a health plan consisting of one employee; some States may consider it to be a group health plan and others may consider it to be in the individual health insurance market. In either case the provisions of MHPA do not apply.) How does a group health plan qualify for an exemption under the one percent cost provision? Generally, plans must implement parity for the first plan year beginning on or after January 1, 1998, but may claim an exemption from parity if, based on at least six months actual data, a plan has experienced a one percent or more cost increase attributable to parity. (Six months of actual data includes all claims incurred during the six months period and reported wit
Related Questions
- Do the requirements applicable to group health plans apply to dental benefits offered as a stand-alone plan or as part of a group heath plan?
- Do all group health plans offering mental health benefits have to meet the parity requirements?
- Does MHPA require all group health plans to provide mental health benefits?
