Parity Enforcement Act of 2025
The Parity Enforcement Act of 2025 is a bill that would impose civil monetary penalties on violations of mental health and substance use disorder (MH/SUD) parity requirements in group health plans and the health insurance coverage offered with those plans. It amends ERISA law to broaden who can be fined (not just plan sponsors but also service providers, plan administrators, and issuers) and to specify that penalties can be assessed for failures to meet parity standards in MH/SUD benefits, as well as related genetic information-related provisions. The act relocates and expands enforcement within the ERISA framework and sets an effective date: the amendments apply to plan years beginning one year after enactment. The overall aim is to strengthen enforcement of parity between MH/SUD benefits and medical/surgical benefits.
Key Points
- 1Civil monetary penalties authorized for parity violations: The bill adds civil monetary penalties for violations of parity requirements related to MH/SUD benefits under ERISA, changing the enforcement landscape for parity issues.
- 2Expanded liable parties: Penalties can be imposed on plan sponsors, service providers, plan administrators, and issuers of group health plans.
- 3Targeted parity provisions: Penalties apply for failures to meet parity requirements described in specified ERISA sections (including those related to genetic information and MH/SUD benefit parity) and the related sections that govern parity in MH/SUD benefits.
- 4Enforcement and statutory changes: The bill amends ERISA Section 502 to include these new penalties and adjusts related enforcement provisions accordingly.
- 5Effective date: The amendments apply to plan years beginning after the date that is one year after enactment.