The Biden Administration's New Rule on Mental Health and Substance Use Disorder Care
The Biden administration has announced a new rule aimed at expanding access to and lowering costs for mental health and substance use disorder care. This rule will apply to group health plans and health insurance issuers for plan years starting January 1, 2024, or after.
The rule requires that mental health and substance use disorder care on private insurance plans be covered at the same level as physical health benefits. This means that insurance companies will need to add more mental health and substance use professionals to their networks and reduce the amount of red tape providers have to go through to deliver care.
The rule also closes a loophole that exempted federally provided health insurance plans from complying with the Mental Health Parity and Addiction Equity Act (MHPAEA). This will require more than 200 additional health plans to improve mental health care for 120,000 consumers.
The Biden administration estimates that the new rule could help 175 million people with private insurance access mental health care using their own plans. The administration also emphasizes that access to mental health care is crucial for the well-being of families.
Enforcement of the rule will fall to the departments of Labor, Treasury, and Health and Human Services. The administration has stated that some provisions of the rule will not apply until January 2026.
While some employer groups have expressed concerns about the burden of the new rule, the Biden administration maintains that it will provide clarity for insurers about their obligations and that departments will assist plans in coming into compliance.
The administration believes that this new rule is an important step in addressing the nation's mental health crisis and ensuring that everyone has access to the care they need.