The Biden administration’s mental health parity rule proposals have sparked concern in the health-care industry, as a new test could potentially eliminate common cost-control techniques for employee health plans. The proposal includes a “substantially all” test which mandates that “non-quantitative treatment limitations” (NQTLs) must be applied equally to mental health benefits as they are to medical and surgical benefits under the Mental Health Parity and Addiction Equity Act.
According to the Departments of Health and Human Services, Labor, and the Treasury, NQTLs can include requirements like prior authorization for care. This means that any restrictions or requirements imposed on mental health benefits must be similar to those imposed on medical and surgical benefits.
The health-care industry is concerned about this new test because it may limit their ability to control costs for employee health plans. They worry that they may no longer be able to implement certain cost-cutting measures that are commonly used. This could have a significant impact on how mental health services are provided and accessed within employee health plans.
While the proposals are not yet finalized, many in the health-care industry are closely watching the developments and preparing for potential changes to how mental health benefits are managed within employee health plans. They fear that if these changes go through, it could lead to higher costs for both employers and employees, as well as reduced access to mental health services.
