What types of health benefit plans are not covered under either the federal or state mental health parity laws?
Mental health and substance use disorder parity laws do not apply to Medicaid, Medicare, hospital indemnity, Medicare supplement, long-term care, disability income, one-time-limited duration policies of not longer than six months (short-term), supplemental benefit or other policies that provide coverage for specific diseases or accidents only, workers’ compensation or any federal health care program. Q: Can benefits for biologically based mental illness or mental health conditions be “carved out” from other medical and surgical benefits in the policy and contracted for separately by employers or insurers? A: Yes. Benefits for mental health treatment can continue to be provided through separate contracts; however, those contractual arrangements may need to be adjusted to comply with state and federal Mental Health Parity laws.
