Biden Administration Issues New Rule Seeking to Ensure Parity in Mental Health Care

By Consumers for Quality Care, on September 25, 2024

Under a new final rule released by the Biden administration, health insurers must now cover mental-health care in the same way they cover care for physical ailments, according to The Hill. 

A 2008 law requires insurers to cover mental-health treatments and care as they would cover anything else, without charging higher copays or requiring additional prior authorization for mental-health care. But health-insurance companies have skirted the law, often failing to have enough in-network mental-health providers, forcing consumers to seek out-of-network providers. This in turn forces them to pay higher out-of-network rates.  

Under the new rule, insurers must reevaluate their reimbursement policies for out-of-network providers. They must also reevaluate how they handle authorization requests from doctors to treat mental-health issues. Finally, the rule requires health insurers to change any prior-authorization practices that create additional hurdles for treating mental illness.  

The new rule comes at a time when more consumers are suffering with mental-health issues and yet are unable to access or afford the care they need. “This final rule will stop the industry evasion that has led millions of people to pay for care even when they have insurance,” said White House Domestic Policy Adviser Neera Tanden. 

CQC urges lawmakers and regulators to ensure that all patients can access the mental health care they need.