June 05, 2025
The Mental Health Parity and Addiction Equity Act (MHPAEA) applies to plans and carriers offering health insurance that covers both medical/surgical (MED/SURG) and mental health/substance use disorder (MH/SUD) benefits. Broadly, MHPAEA requires plans that cover MH/SUD benefits to provide such coverage on par with the plan's MED/SURG benefits. The DOL has identified common "red flag" plan terms that signal possible MHPAEA noncompliance. While these terms do not automatically violate MHPAEA, they call for scrutiny. Plan sponsors should review their plan documents for the following red flags.