75798 Federal Register / Vol. 69, No. 242 / Friday, December 17, 2004 / Rules and Regulations 

1Part 7 of Subtitle of Title I of ERISA, Chapter 

100 of Subtitle K of the Code, and Title XXVII of 

the PHS Act were added by the Health Insurance 

Portability and Accountability Act of 1996 (HIPAA), 

Public Law 104–191.

DEPARTMENT OF LABOR

Employee Benefits Security 

Administration 

29 CFR Part 2590 

RIN 1210–AA62 

Mental Health Parity

AGENCY: Employee Benefits Security 

Administration, Department of Labor.

ACTION: Interim final amendment to 

regulation. 

SUMMARY: This document contains an 

interim final amendment to modify the 

sunset date of interim final regulations 

under the Mental Health Parity Act 

(MHPA) to be consistent with legislation 

passed during the 108th Congress.

DATES: Effective date. The interim final 

amendment is effective December 31, 

2004. 

Applicability dates. The requirements 

of the interim final amendment apply to 

group health plans and health insurance 

issuers offering health insurance 

coverage in connection with a group 

health plan beginning December 31, 

2004. The MHPA interim final 

amendment extends the sunset date 

from December 31, 2004, to December 

31, 2005. Pursuant to the extended 

sunset date, MHPA requirements apply 

to benefits for services furnished before 

December 31, 2005.

FOR FURTHER INFORMATION CONTACT:

Mark Connor, Employee Benefits 

Security Administration, Department of 

Labor, at (202) 693–8335.

Customer Service Information:

Individuals interested in obtaining 

additional information on the Mental 

Health Parity Act and other health care 

laws may request copies of Department 

of Labor publications concerning 

changes in health care law by calling the 

EBSA Toll-Free Hotline at 1–866–444–

EBSA (3272), or access the publications 

on-line at http://www.dol.gov/ebsa, the 

Department of Labor’s Web site. 

Information on the Mental Health Parity 

Act and other health care laws is also 

available on the Department of Labor’s 

interactive Web pages, Health Elaws 

(http://www.dol.gov/elaws/ebsa/health).

SUPPLEMENTARY INFORMATION: 

A. Background 

The Mental Health Parity Act of 1996 

(MHPA) was enacted on September 26, 

1996 (Pub. L. 104–204, 110 Stat. 2944). 

MHPA amended the Employee 

Retirement Income Security Act of 1974 

(ERISA) and the Public Health Service 

Act (PHS Act) to provide for parity in 

the application of annual and lifetime 

dollar limits on mental health benefits 

with dollar limits on medical/surgical 

benefits. Provisions implementing 

MHPA were later added to the Internal 

Revenue Code of 1986 (Code) under the 

Taxpayer Relief Act of 1997 (Pub. L. 

105–34, 111 Stat. 1080). 

The provisions of MHPA, as originally 

enacted, are set forth in Part 7 of 

Subtitle B of Title I of ERISA, Chapter 

100 of Subtitle K of the Code, and Title 

XXVII of the PHS Act.1 The MHPA 

provisions in ERISA generally apply to 

all group health plans other than 

governmental plans, church plans, and 

certain other plans. These provisions 

also apply to health insurance issuers 

that offer health insurance coverage in 

connection with such group health 

plans. Generally, the Secretary of Labor 

enforces the MHPA provisions in 

ERISA, except that no enforcement 

action may be taken by the Secretary 

against issuers. However, individuals 

may generally pursue actions against 

issuers under ERISA and, in some 

circumstances, under state law.

B. Overview of MHPA 

The MHPA provisions set forth in 

section 712 of ERISA apply to a group 

health plan (or health insurance 

coverage offered by issuers in 

connection with a group health plan) 

that provides both medical/surgical 

benefits and mental health benefits. 

MHPA’s original text included a sunset 

provision specifying that MHPA’s 

provisions applied to benefits for 

services furnished before September 30, 

2001. On December 22, 1997, the 

Departments of Labor, the Treasury, and 

Health and Human Services issued 

interim final regulations under MHPA 

in the Federal Register (62 FR 66931). 

The interim final regulations included 

this statutory sunset date. 

On January 10, 2002, President Bush 

signed H.R. 3061 (Pub. L. 107–116, 115 

Stat. 2177), the 2002 Appropriations Act 

for the Departments of Labor, Health 

and Human Services, and Education. 

This legislation extended MHPA’s 

original sunset date under ERISA, the 

Code, and the PHS Act, so that MHPA’s 

provisions would apply to benefits for 

services furnished before December 31, 

2002. 

On March 9, 2002, President Bush 

signed H.R. 3090, the Job Creation and 

Worker Assistance Act of 2002 (Pub. L. 

107–147, 116 Stat. 21), that included an 

amendment to section 9812 of the Code 

(the mental health parity provisions). 

This legislation further extended 

MHPA’s original sunset date under the 

Code to December 31, 2003. 

On September 27, 2002, the 

Department of Labor issued an interim 

final amendment for mental health 

parity in the Federal Register (67 FR 

60859). The interim final amendment 

included the new statutory sunset date 

under H.R. 3061, so that MHPA’s 

provisions would apply to benefits for 

services furnished before December 31, 

2002. The Department made the 

effective date of this interim final 

amendment to the regulations 

September 30, 2001. 

On December 2, 2002, President Bush 

signed H.R. 5716, the Mental Health 

Parity Reauthorization Act of 2002 (Pub. 

L. 107–313, 116 Stat. 2457), an 

amendment to section 712 of ERISA and 

Section 2705 of the PHS Act. This 

legislation further extended MHPA’s 

original sunset date under ERISA and 

the PHS Act to December 31, 2003. On 

April 14, 2003, the Department of Labor 

issued an interim final amendment for 

mental health parity in the Federal 

Register (68 FR 18048). The interim 

final amendment included the new 

statutory sunset date under H.R. 5716, 

so that MHPA’s provisions would apply 

to benefits for services furnished before 

December 31, 2003.

On December 19, 2003, President 

Bush signed S. 1929, the Mental Health 

Parity Reauthorization Act of 2003 (Pub. 

L. 108–197, 117 Stat. 2998), an 

amendment to section 712 of ERISA and 

Section 2705 of the PHS Act. This 

legislation further extended MHPA’s 

original sunset date under ERISA and 

the PHS Act to December 31, 2004. On 

January 26, 2004, the Department of 

Labor issued an interim final 

amendment for mental health parity in 

the Federal Register (69 FR 3815). The 

final rule included the new statutory 

sunset date under S. 1929, so that 

MHPA’s provisions would apply to 

benefits for services furnished before 

December 31, 2004. 

On October 4, 2004, President Bush 

signed H.R. 1308, the Working Families 

Tax Relief Act of 2004 (Pub. L. 108–311, 

118 Stat. 1166), an amendment to 

section 712 of ERISA, Section 9812 of 

the Code, and Section 2705 of the PHS 

Act. This legislation further extends 

MHPA’s original sunset date under 

ERISA, the Code, and the PHS Act to 

December 31, 2005. Like MHPA, this 

amendment to MHPA applies to a group 

health plan (or health insurance 

coverage offered by issuers in 

connection with a group health plan) 

that provides both medical/surgical 

Federal Register / Vol. 69, No. 242 / Friday, December 17, 2004 / Rules and Regulations 75799

2The parity requirements under MHPA, the 

interim regulations, and the amendment to the 

interim regulations do not apply to any group 

health plan (or health insurance coverage offered in 

connection with a group health plan) for any plan 

year of a small employer. The term ‘‘small 

employer’’ is defined as an employer who 

employed an average of at least 2 but not more than 

50 employees on business days during the 

preceding calendar year and who employs at least 

2 employees on the first day of the plan year.

benefits and mental health benefits.2 As 

a result of this statutory amendment, 

and to assist employers, plan sponsors, 

health insurance issuers, and workers, 

the Department of Labor has developed 

this amendment of the interim final 

regulations, in consultation with the 

Departments of the Treasury and Health 

and Human Services, conforming the 

regulatory sunset date to the new 

statutory sunset date. The Department is 

also making conforming changes 

extending the duration of the increased 

cost exemption to be consistent with the 

new sunset date.

Since the extension of this sunset date 

is not discretionary, this amendment to 

the MHPA regulations is promulgated 

on an interim final basis pursuant to 

Section 734 of ERISA. This interim final 

amendment is also promulgated 

pursuant to Section 553(d)(3) of the 

Administrative Procedure Act, allowing 

for regulations to become effective 

immediately for good cause. 

C. Executive Order 12866 

Under Executive Order 12866, the 

Department must determine whether a 

regulatory action is ‘‘significant’’ and 

therefore subject to the requirements of 

the Executive Order and subject to 

review by the Office of Management and 

Budget (OMB). Under section 3(f), the 

order defines a ‘‘significant regulatory 

action’’ as an action that is likely to 

result in a rule: (1) Having an annual 

effect on the economy of $100 million 

or more, or adversely and materially 

affecting a sector of the economy, 

productivity, competition, jobs, the 

environment, public health or safety, or 

state, local or tribal governments or 

communities (also referred to as 

‘‘economically significant’’); (2) creating 

serious inconsistency or otherwise 

interfering with an action taken or 

planned by another agency; (3) 

materially altering the budgetary 

impacts of entitlement grants, user fees, 

or loan programs or the rights and 

obligations of recipients thereof; or (4) 

raising novel legal or policy issues 

arising out of legal mandates, the 

President’s priorities, or the principles 

set forth in the Executive Order. 

Pursuant to the terms of the Executive 

Order, it has been determined that this 

action is not a ‘‘significant regulatory 

action’’ within the meaning of the 

Executive Order. This action is an 

amendment to the interim final 

regulations and merely extends the 

regulatory sunset date to conform to the 

new statutory sunset date added by H.R. 

1308. 

D. Paperwork Reduction Act 

The information collection provisions 

of MHPA incorporated in the 

Department’s interim final rules are 

currently approved under OMB control 

numbers 1210–0105 (Notice to 

Participants and Beneficiaries and 

Federal Government of Electing One 

Percent Increased Cost Exemption), and 

1210–0106 (Calculation and Disclosure 

of Documentation of Eligibility for 

Exemption). Because this action does 

not change the approved information 

collection provisions, no submission for 

OMB approval is being made in 

connection with this interim final 

amendment. However, because OMB’s 

approval for the information collection 

requests approved under control 

numbers 1210–0105 and 1210–0106 

were scheduled to expire on November 

30, 2004 and October 31, 2004, 

respectively, the Department requested 

public comment on their proposed 

renewal, and has submitted requests to 

OMB for continuing approval. OMB is 

currently reviewing those requests. 

E. Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) (RFA) imposes 

certain requirements with respect to 

federal rules that are subject to the 

notice and comment requirements of 

section 553(b) of the Administrative 

Procedure Act (5 U.S.C. 551 et seq.). 

Because this amendment to the interim 

final regulations is being published on 

an interim final basis, without prior 

notice and a period for comment, the 

Regulatory Flexibility Act does not 

apply. 

F. Unfunded Mandates Reform Act 

For purposes of the Unfunded 

Mandates Reform Act of 1995 (Pub. L. 

104–4) (UMRA), as well as Executive 

Order 12875, this interim final 

amendment does not include any 

federal mandate that may result in 

expenditures by state, local, or tribal 

governments, and does not include 

mandates that may impose an annual 

expenditure of $100 million or more on 

the private sector. 

G. Congressional Review Act 

This interim final amendment is 

subject to the Congressional Review Act 

provisions of the Small Business 

Regulatory Enforcement Fairness Act of 

1996 (5 U.S.C. 801 et seq.) (SBREFA), 

and has been transmitted to Congress 

and the Comptroller General for review. 

This amendment to the interim final 

regulations is not a major rule, as that 

term is defined by 5 U.S.C. 804. 

H. Federalism Statement 

Executive Order 13132 (August 4, 

1999) outlines fundamental principles 

of federalism and requires the 

adherence to specific criteria by federal 

agencies in the process of their 

formulation and implementation of 

policies that have substantial direct 

effects on the states, the relationship 

between the states, the relationship 

between the national government and 

the states, or on the distribution of 

power and responsibilities among the 

various levels of government. This 

interim final amendment does not have 

federalism implications as it only 

conforms the regulatory sunset date to 

the new statutory sunset date added by 

H.R. 1308.

List of Subjects in 29 CFR Part 2590 

Continuation coverage, Disclosure, 

Employee benefit plans, Group health 

plans, Health care, Health insurance, 

Medical child support, Reporting and 

recordkeeping requirements.

Employee Benefits Security 

Administration

■ 29 CFR part 2590 is amended as 

follows:

PART 2590—RULES AND 

REGULATIONS FOR GROUP HEALTH 

PLANS

■ 1. The authority for part 2590 is 

revised to read as follows:

Authority: 29 U.S.C. 1027, 1059, 1135, 

1161–1168, 1169, 1181–1183, 1181 note, 

1185, 1185a, 1185b, 1191, 1191a, 1191b, and 

1191c, sec. 101(g), Pub. L. 104–191, 101 Stat. 

1936; sec. 401(b), Pub. L. 105–200, 112 Stat. 

645 (42 U.S.C. 651 note); Secretary of Labor’s 

Order 1–2003, 68 FR 5374 (Feb. 3, 2003).

§ 2590.712 [Amended]

■ 2. Amend § 2590.712(f)(1), (g)(2), and 

(i) by removing the date ‘‘December 31, 

2004’’ and add in its place the date 

‘‘December 31, 2005’’ wherever it 

appears in these paragraphs.

Signed in Washington, DC this 10th day of 

December, 2004. 

Ann L. Combs, 

Assistant Secretary, Employee Benefits 

Security Administration.

[FR Doc. 04–27531 Filed 12–16–04; 8:45 am] 

BILLING CODE 4510–29–P