Enforcement of MHPAEA 2024 Final Rule Pause: What Employers Need to Know
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Article Summary
On May 15, 2025, the US Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury (IRS) announced that they will pause enforcement of the 2024 Final Rule under the Mental Health Parity and Addiction Equity Act (MHPAEA).
Quick Look
- Enforcement Paused: As of May 15, 2025, federal agencies will not enforce the 2024 MHPAAEA Final Rule due to ongoing litigation.
- Core Compliance Still Remains: Employers must continue to meet existing MHPAEA standards, including NQTL comparative analysis and parity in MH/SUD benefits.
On May 15, 2025, the US Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury (IRS) announced that they will pause enforcement of the 2024 Final Rule under the Mental Health Parity and Addiction Equity Act (MHPAEA).
This decision follows a lawsuit filed on January 17, 2025, by the ERISA Industry Committee (ERIC), which argued that the 2024 Final Rule imposed excessive administrative burdens and unrealistic compliance expectations on plan sponsors. The Departments have agreed to reconsider the rule and its implementation while the litigation is pending.
What This Means for Employers and Plan Sponsors
While enforcement of the 2024 Final Rule is on hold, existing MHPAEA requirements remain in effect. This includes compliance with the 2013 Final Rules and provisions from the Consolidated Appropriations Act of 2021.
Plan Sponsors Must Still:
Avoid Discriminatory Limitations: Ensure that quantitative treatment limitations (QTLs) and non-quantitative treatment limitations (NQTLs) for mental health/substance use disorder (MH/SUD) benefits are no more restrictive than those for medical/surgical (M/S) benefits.
Document NQTL Compliance: Conduct and maintain a comparative analysis (CA) of NQTLs. This documentation must be available upon request to plan participants and federal regulators.
Comply with State Laws: Fully insured plans must also adhere to state-level mental health parity laws, which may impose additional requirements.
Key Provisions of the 2024 Final Rule Now on Hold
The enforcement pause specifically affects the following provisions of the 2024 Final Rule:
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Fiduciary Certification Requirement
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"Meaningful Benefits" Mandate
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Outcome Data Review Standards
Plan fiduciaries were required to certify that they engaged in a prudent process to select and monitor vendors conducting the comparative analysis. While this certification is no longer enforced, fiduciaries must still uphold their ERISA responsibilities in practice.
The rule required that if a plan offers any MH/SUD benefit in a classification, it must offer a "meaningful" benefit in every classification where M/S benefits are provided. This standard is now paused, giving plans more flexibility in benefit design.
The 2024 rule introduced specific standards for using outcome data to evaluate NQTL compliance. These standards will not be enforced during the pause, allowing plan sponsors to use alternative data sources and methodologies.
Looking Ahead
The Departments have indicated they may revise or rescind the 2024 Final Rule depending on the outcome of the lawsuit and further regulatory review. In the meantime, employers should:
- Continue complying with existing MHPAEA requirements.
- Maintain robust documentation of NQTL analyses.
- Monitor legal and regulatory updates closely.
If you have questions about how this enforcement pause affects your plan or need help navigating MHPAEA compliance, please reach out to your OneDigital advisor.