How does the Mental Health Parity and Addiction Equity Act affect insurance policies?

The Mental Health Parity and Addiction Equity Act (MHPAEA) is a significant piece of legislation that establishes important standards for how mental health and substance use disorder services must be treated in relation to health insurance coverage. The act requires that insurers provide mental health and substance use disorder benefits that are no more restrictive than the benefits for medical and surgical services.

This means that insurance policies must ensure that coverage for mental health services is equal to that of physical health services in terms of limits, requirements, and other aspects of health insurance. For example, if a health plan requires a certain number of visits or offers specific levels of co-pays for physical health services, it cannot impose stricter limits or higher costs for mental health services. This equity ensures that individuals seeking treatment for mental health issues are not deterred by inequitable policies that could affect their access to care.

The other choices suggest various misconceptions about the act. The act does not mandate higher premiums for mental health coverage nor does it allow insurers to limit mental health benefits more than physical health benefits. Additionally, the act does not eliminate mental health coverage; rather, it aims to improve and equalize access to such services. Thus, the correct answer highlights the core aspect of the MHPAEA,