Does the MHP Act require plan sponsors to cover mental health or substance abuse benefits?
No. The MHP Act does not require plan sponsors to cover mental health or substance abuse benefits. However, if a plan sponsor chooses to offer mental health or substance abuse benefits, the MHP Act prohibits imposing more restrictive financial requirements (such as co-pays or deductibles) or treatment limitations (such as day or visit limits) on mental health or substance abuse benefits than those applied to medical or surgical benefits. As stated below, state law will continue to apply and may, for example, mandate additional mental health/substance abuse coverage. Does the MHP Act specify how parity must be achieved? No. The MHP Act does not dictate how parity should be achieved. For example, the MHP Act does not say that parity should be achieved through reducing medical benefits or by increasing mental health benefits. The MHP Act only requires “parity” however the health plan chooses to structure the benefits. What exemptions, if any, are in place for this law? • Small employer ex
