What Is the Mental Health Parity Act?

The Mental Health Parity Act (MHPA) is a federal law requiring health insurance plans to cover mental health services at the same level as physical health care. It prevents insurers from imposing higher copays, stricter limits, or lower reimbursement rates for mental health and substance use disorder treatments.

How does the Mental Health Parity Act work?

• Equal coverage: Insurance plans cannot charge higher out-of-pocket costs for therapy or psychiatric care compared to medical visits.
• No stricter limitations: Treatment limits, like visit caps or prior authorizations, must be comparable to those for medical conditions.
• Expanded protections: The Mental Health Parity and Addiction Equity Act (MHPAEA) of 2008 strengthened these protections by including substance use disorder treatment.

Who does the Mental Health Parity Act apply to?

• Employer-sponsored health plans (with more than 50 employees).
• Medicare Advantage and Medicaid managed care plans.
• Individual and small-group health insurance plans under the Affordable Care Act (ACA).

How Solace can help

If you’re struggling to get coverage for mental health services, a Solace advocate can review your benefits, identify unfair restrictions, and help appeal denied claims. Advocates can also connect you with affordable mental health resources.

What to do next

Need help understanding your mental health coverage or appealing a denied claim? Find an advocate today.