In September 2024, the U.S. Departments of Labor, Health and Human Services, and Treasury (the “Departments”) published a new set of final regulations for the Mental Health Parity and Addiction Equity Act (MHPAEA). We refer to the 2024 final regulations as the “2024 NQTL Regulations” and broadly refer to MHPAEA, its regulations, and other related guidance together as the “parity rules.”
In reaction to a recent lawsuit, the Departments issued a statement of non-enforcement on May 15, 2025. This statement indicates that the Departments will not enforce any new rules added by the 2024 NQTL Regulations (with some caveats) while they reconsider whether to withdraw and/or modify them. The Departments also intend to evaluate their approaches to enforcement of the parity rules. Please note that all other parity rules remain valid and enforceable, which includes the dreaded NQTL comparative analysis requirement.
This alert will address the lawsuit, the non-enforcement position taken by the Departments, observations about the status of certain parity issues, and employer considerations. Our alert is relevant for all employers sponsoring group health coverage, but it is most relevant for employers sponsoring self-insured medical and prescription drug coverage.
