Mental Health Parity Act Of 1996
What Does Mental Health Parity Act Of 1996 Mean?
The Mental Health Parity Act of 1996 (MHPA) is a law that mandates health insurance providers to offer mental health care coverage on par with medical or surgical benefits.
Before the MHPA was enacted, insurance companies were not obligated to cover mental health care. This lack of coverage made access to mental health services particularly challenging for individuals with limited financial resources.
Insuranceopedia Explains Mental Health Parity Act Of 1996
The Mental Health Parity Act (MHPA), signed into law by President Clinton in 1996, requires that annual and lifetime caps on mental health coverage match those of other types of health coverage.
Before this law, mental health treatment was often covered at significantly lower levels compared to physical health conditions under most health insurance policies. Whether a health plan is subject to federal parity laws depends on various factors, including the type and size of the health plan.
