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MHPAEA Final Rule inches closer to chopping block

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Home Perspectives MHPAEA Final Rule inches closer to chopping block
On May 15, 2025, the Departments of Labor, Health and Human Services, and Treasury (the Departments) published a joint statement confirming that the Trump administration will not enforce (or pursue ongoing enforcement actions relevant to) the 2024 Final Rule on the Mental Health Parity and Addiction Equity Act (MHPAEA) until an ongoing lawsuit seeking to invalidate portions of the Final Rule has concluded and for an additional 18 months thereafter. Statutory obligations defined by MHPAEA – as amended by the Consolidated Appropriations Act, 2021 (CAA) – remain in effect, though the Departments note in their joint statement that the government plans to “undertake a broader reexamination of each department’s respective enforcement approach under MHPAEA.”

Managed care organizations (MCOs) should note that this policy will suspend enforcement for portions of the Final Rule that are new (e.g., not included in the 2013 Final Rule as amended by the CAA) and that apply to the 2025 and 2026 plan years. Specifically, the government will not demand compliance with the Final Rule’s new non-quantitative treatment limitation (NQTL) comparative analyses requirements.

In January 2025, the ERISA Industry Committee (ERIC) filed a lawsuit against the Departments, contending that the Final Rule unlawfully exceeds statutory authority by imposing de facto benefits mandates, creates vague and burdensome requirements, improperly delegates regulatory power, and violates both the Administrative Procedure Act and due process. On May 9, the Departments filed to hold the lawsuit in abeyance while the government reviews its MHPAEA enforcement program and decides whether to modify or rescind the 2024 Final Rule. This request was granted, and the case was stayed on May 12. (For more information, please refer to our overview of the ERIC lawsuit.)

From a practical perspective, MCOs should be mindful that:

  • The government will not be enforcing new requirements defined in the 2024 Final Rule for MHPAEA that apply to the 2025 and 2026 plan years, including NQTL requirements.
  • The government’s non-enforcement policy will remain in effect until 18 months after the conclusion of ERIC’s (currently stayed) lawsuit.
  • MHPAEA statutory obligations defined in the 2013 Final Rule as amended by the CAA remain in effect and will be enforced.

Our team will closely monitor this issue as it evolves. We encourage all those with specific questions to schedule a conversation with our attorneys.

Newsflash 2025-137