Navigating Mental Health Parity Laws: What Employers Need to Know

Mental Health: Supporting Your People and Your Organization

Access to mental healthcare is essential for the wellbeing of your people, their families, and your organization.

Supporting your people means ensuring they know what’s available. Here’s what to know about an employer’s requirements for covering mental health and substance treatment(s), why mental healthcare matters, and how to foster a psychologically safe and stigma-free workplace culture.

Legal Obligations for Mental Health in the Workplace

Mental Health Parity, Defined
The Mental Health Parity and Addiction Equity Act (MHPAEA), commonly referred to as Mental Health Parity, requires that mental health and substance use disorder benefits be covered the same as medical care.
However, understanding the law is only part of the equation. Employees also need to know what is available and how to use it.

Mental Health Parity is all about equity. Therapy, inpatient care, and other mental health services should be covered the same way as medical treatments. According to the final rules under the MHPAEA, this means no extra restrictions, coverage differences, or barriers.

Why Mental Health Matters

The Increasing Demand for Mental Health Support
Mental health benefits utilization has seen a noticeable increase in recent years, with 62% of employers reporting a rise in the use of mental health resources over the past year. Employees are now seeking care more than ever and the stigma is steadily decreasing. Organizations that prioritize mental health see better retention rates, engagement, and productivity.

The Link Between Mental and Physical Wellbeing
Mental health is closely linked with both physical and financial wellbeing. In the past year, 44% of individuals reported that financial stress negatively affected their physical health, and 55% said money worries had a severe or major impact on their mental health.

When employees have more access to mental health resources, they are far more likely to be productive and engaged.

Employees Expect Mental Health Support
Today’s workforce is actively seeking out organizations that prioritize mental health. In return, employers that invest in mental wellbeing see higher job satisfaction and lower absenteeism.

Building a Workplace Culture That Prioritizes Mental Health

Actionable Steps for Employers:

1. Empower Employees with Accessible Information
   • Provide clear benefits information in an easy-to-find location.
   • Partner with care providers or an Employee Assistance Program (EAP) to increase access.
   • Include family members in communications – their mental health impacts your people too.
2. Assess Your Culture and Leadership’s Role
   • Encourage an open dialogue about mental health.
   • Evaluate policies to ensure they support mental wellbeing.
   • Train leaders to model and reinforce a culture of mental health awareness.
3. Regularly Review and Adapt Benefits
   • Ensure your mental health benefits align with industry best practices.
   • Keep up with compliance changes, including new transparency requirements.
   • Stay connected with your benefits provider to optimize offerings across a diverse workforce.

Make sure your employees know what’s covered – understanding their benefits is the first step to using them. Share and encourage employees to explore OneDigital’s Breakroom for resources that make it easy to understand and utilize their health, financial, and wellbeing benefits.

The Bottom Line

The Increasing Demand for Mental Health Support
Mental Health Parity is not just about compliance – it’s about ensuring employees use the support available to them. Therapy, inpatient care, and mental health treatment are covered just like medical services. Organizations that communicate this effectively see lower absenteeism, better engagement, and a healthier workplace.

Discover additional best practices for leaders by tuning in to a workshop covering the steps needed to create and implement a proactive mental health strategy at your organization.