JUN 02, 2025
In recent court filings, the Departments of Health and Human Services (“HHS”), Labor, and the Treasury (collectively, “the Departments”) announced they will:
The Departments have since issued a statement announcing enforcement relief.
On September 9, 2024, the Departments released final rules pertaining to the MHPAEA with the aim of ensuring that individuals who seek treatment for mental health (“MH”) or substance use disorder (“SUD”) reasons do not face greater burdens than they would face when seeking coverage for medical or surgical (“M/S”) reasons.
Among other things, the 2024 final rule required:
On January 17, 2025, the ERISA Industry Committee (“ERIC”) filed suit against the Departments arguing that the 2024 rules create an unworkable standard, violate due process, exceed the authority of the Departments and the intent of Congress, and are arbitrary and capricious.
On May 9, 2025, the Departments filed a Motion for Abeyance in the lawsuit. In the filing, the Departments stated that they intend to:
Prior to the filing, the Departments provided ERIC with a copy of the non-enforcement policy that they expect to publicly release memorializing their intention not to enforce the portions of the 2024 rules that are applicable for plan years beginning on or after January 1, 2025 and January 1, 2026. In response, the Court granted a stay in the lawsuit on May 12, 2025.
On May 15, 2025, the Departments issued a statement regarding enforcement of the 2024 final MHPAEA rules.
The Departments’ statement acknowledges that they remain committed to ensuring individuals receive protections under the law in a way that is not unduly burdensome to plans and carriers.
With respect to the 2024 Final Rule, the Departments’ announcement of non-enforcement relief and plan to revisit the final rule is welcome news as employers and plans were challenged by these complex requirements.
This announcement only applies to the specific provisions of the 2024 Final Rule. Plans and carriers will need to continue to comply with other aspects of MHPAEA including the statute (as amended under CAA-21), 2013 final regulations and relevant guidance.
The Departments may issue further guidance addressing non-enforcement relief and MHPAEA compliance in light of this statement.
Our Compliance Team is monitoring developments and will release an update when the guidance is available.
This document is designed to highlight various employee benefit matters of general interest to our readers. It is not intended to interpret laws or regulations, or to address specific client situations. You should not act or rely
on any information contained herein without seeking the advice of an attorney or tax professional. © My Benefit Advisor. All Rights Reserved. CA Insurance License #0G33244
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