Mental health parity describes the equal treatment of mental health conditions and substance use disorders in insurance plans. … However, parity doesn’t mean that you will get good mental health coverage. Comprehensive parity requires equal coverage, not necessarily “good” coverage.
Why is mental health parity important?
One of the many important promises of both the Affordable Care Act and the Mental Health Parity and Addiction Equity Act is to ensure that health plans and insurers offer mental health and substance use disorder benefits that are comparable to their coverage for general medical and surgical care.
What do mental health parity laws require?
The Mental Health Parity Act (MHPA) is legislation signed into United States law on September 26, 1996 that requires annual or lifetime dollar limits on mental health benefits to be no lower than any such dollar limits for medical and surgical benefits offered by a group health plan or health insurance issuer offering …
What does parity mean in Medicare?
The law requires that large private health insurance plans (those with more than 50 enrollees) offering mental health and/or substance abuse services do so at the same level as they would other medical benefits without additional management. …
What does parity law mean?
Parity is the Law
The Federal Parity Law says three things: Health insurance plans CANNOT have higher co-payments and other out-of-pocket expenses for your behavioral health benefits than they do for other medical benefits.
When was the Mental Health Parity Act enacted?
The Mental Health Parity and Addiction Equity Act (federal parity law) was enacted in 2008 and requires insurance coverage for mental health conditions, including substance use disorders, to be no more restrictive than insurance coverage for other medical conditions.
What did the 1996 parity law accomplish?
The Mental Health Parity Act (MHPA) of 1996 (P.L.104-204) required group health plans with fifty or more employees that offered mental health benefits to apply the same lifetime and annual dollar limits to mental health coverage as those applied to coverage for medical/surgical benefits.
What are non quantitative treatment limitations?
What are Non-Quantitative Treatment Limitations (NQTL)?
- Medical management standards limiting or excluding benefits based on medical necessity, medical appropriateness, or based on whether the treatment is experimental or investigative (including standards for concurrent review).
- Formulary design for prescription drugs.
Does Mhpaea apply to Medicaid?
The law does not apply to Medicare or self-insured health plans. … MHPAEA supplements prior provisions under the Mental Health Parity Act of 1996 (MHPA), which required parity with respect to aggregate lifetime and annual dollar limits for mental health benefits. California has its own mental health parity law.
Does Mhpaea apply to Medicare?
Group health plans of this size do not have to cover MH/SUDs. … Beyond that, MHPAEA applies to Medicare Advantage coverage offered through a group health plan, Medicaid managed care plans, the State Children’s Health Insurance Program, and state and local government plans that do not opt-out.
What does parity mean?
(Entry 1 of 2) 1 : the quality or state of being equal or equivalent Women have fought for parity with men in the workplace. 2a : equivalence of a commodity price expressed in one currency to its price expressed in another The two currencies are approaching parity for the first time in decades.
What is a parity diagnosis?
When a plan has parity, it means that if you are provided unlimited doctor visits for a chronic condition like diabetes then they must offer unlimited visits for a mental health condition such as depression or schizophrenia.
What does payment parity mean?
Pay parity is a term used to signify the lack of a pay gap, Holloway said. “A lot of organizations seek to have pay parity. … Organizations often will define what they mean with this term. Generally, the goal is to pay fairly for people performing the same job, she said.
What is parity used for?
Using a parity bit is a simple way of checking for errors. Basically, a single data bit is added to the end of a data block to ensure the number of bits in the message is either odd or even.
Which states have parity laws?
The states with true parity are: Arkansas, Delaware, Georgia, Hawaii, Kentucky, Minnesota, Missouri, New Mexico, Utah and Virginia. California is slated to join them under a law signed in October by Gov.
Which states have telehealth parity laws?
Only 22% of states have telehealth parity laws (Arkansas, Connecticut, Delaware, Indiana, Massachusetts, Minnesota, New Jersey, New Mexico, North Dakota, Tennessee, and Vermont).