Levy excise taxes on plans violating the federal parity law
Recommendation
The U.S. Department of Treasury should exercise its existing authority under 26 U.S.C. § 4980D to levy excise taxes on health plans that violate the Mental Health Parity and Addiction Equity Act (MHPAEA).[1]
Background/summary
MHPAEA requires equity in coverage between mental health and substance use disorder (MH/SUDs) and medical/surgical benefits.[2][3] When passed in 2008, the MHPAEA applied only to group health plans and group health insurance.[2][3] However, in 2010, the Affordable Care Act amended the law to include the individual health insurance market.[2][3] While the MHPAEA has significantly improved access to MH/SUD coverage for millions of Americans, the Department of Labor, in coordination with state regulators, has uncovered numerous health plans in violation of MHPAEA.[4] Everyone deserves equal coverage of mental health and addiction treatment services, and the Department of Treasury’s failure to use its existing authority has weakened the ability to enforce the law.[5] It should utilize its existing authority to levy taxes on plans in violation of the MHPAEA.[1][3]
citations
1. The Kennedy Forum. Recommendations of Congressman Patrick J. Kennedy to the President’s Commission on Combating Drug Addiction and the Opioid Crisis. Last Updated October 2017.
2. U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services. The Mental Health Parity and Addiction Equity Act (MHPAEA). (n.d.)
3. The Kennedy Forum. What is Parity? (n.d.)
4. U.S. Department of Labor, U.S. Department of Health and Human Services, and the U.S. Department of the Treasury. Realizing Parity, Reducing Stigma, and Raising Awareness: Increasing Access to Mental Health and Substance Use Disorder Coverage, 2022 MHPAEA Report to Congress. Last Updated January 2022.
5. The Kennedy Forum. Parity. (n.d.)