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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5524 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5524

To provide for civil monetary penalties for violations of mental health 
                          parity requirements.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           December 12, 2024

   Mr. Murphy (for himself, Ms. Smith, and Mr. Lujan) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
To provide for civil monetary penalties for violations of mental health 
                          parity requirements.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Parity Enforcement Act of 2024''.

SEC. 2. LIABILITY FOR, ENFORCEMENT OF, AND CIVIL MONETARY PENALTIES FOR 
              PARITY VIOLATIONS.

    (a) PHSA.--
            (1) In general.--Section 2726(a) of the Public Health 
        Service Act (42 U.S.C. 300gg-26(a)) is amended by adding at the 
        end the following:
            ``(9) Service provider liability.--In the case of a 
        violation of this section by a group health plan or a health 
        insurance issuer offering group or individual health insurance 
        coverage--
                    ``(A) a plan sponsor or a service provider, 
                including any third-party administrator, managed 
                behavioral health organization, or entity providing 
                pharmacy benefit management services, of such plan or 
                coverage that causes or contributes to such violation 
                shall also be liable for such violation; and
                    ``(B) the Secretary shall have the discretion to 
                determine the percentage of liability of between the 
                plan, issuer, sponsor, and service provider, as 
                applicable.''.
            (2) Enforcement.--Section 2723 of the Public Health Service 
        Act (42 U.S.C. 300gg-22) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by adding at the end 
                        the following: ``In the case of the 
                        requirements of subsection (a) of section 2726 
                        with respect to parity in mental health and 
                        substance use disorder benefits, each State may 
                        require that plan sponsors or service 
                        providers, including any third-party 
                        administrator, managed behavioral health 
                        organization, or entity providing pharmacy 
                        benefit management services, of such coverage 
                        meet such requirements.''; and
                            (ii) in paragraph (2), by inserting ``, 
                        plan sponsors, or service providers, including 
                        any third-party administrator, managed 
                        behavioral health organization, or entity 
                        providing pharmacy benefit management 
                        services,'' after ``health insurance issuers''; 
                        and
                    (B) in subsection (b)(3)--
                            (i) in the heading, by striking ``genetic 
                        information'' and inserting ``genetic 
                        information and parity in mental health and 
                        substance use disorder benefits''; and
                            (ii) in subparagraph (A), by striking ``any 
                        failure'' and all that follows through ``in 
                        connection with the plan.'' and inserting the 
                        following: ``any failure of a health insurance 
                        issuer or a plan sponsor or any participation 
                        in such failure by a service provider, 
                        including any third-party administrator, 
                        managed behavioral health organization, or 
                        entity providing pharmacy benefit management 
                        services, in connection with a group health 
                        plan--
                            ``(i) to meet the requirements of 
                        subsection (a)(1)(F), (b)(3), (c), or (d) of 
                        section 2702 or section 2701 or 2702(b)(1) with 
                        respect to genetic information; or
                            ``(ii) to meet the requirements of 
                        subsection (a) of section 2726 with respect to 
                        parity in mental health and substance use 
                        disorder benefits.''.
    (b) ERISA.--
            (1) In general.--Section 712(a) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1185a(a)) is amended by 
        adding at the end the following:
            ``(9) Service provider liability.--In the case of a 
        violation of this section by a group health plan or a health 
        insurance issuer offering group health insurance coverage--
                    ``(A) a plan sponsor or a service provider, 
                including any third-party administrator, managed 
                behavioral health organization, or entity providing 
                pharmacy benefit management services, of such plan or 
                coverage that causes or contributes to such violation 
                shall also be liable for such violation; and
                    ``(B) the Secretary shall have the discretion to 
                determine the percentage of liability of between the 
                plan, issuer, sponsor, and service provider, as 
                applicable.''.
            (2) Enforcement.--Section 502 of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1132) is amended--
                    (A) in subsection (a), by striking paragraph (6) 
                and inserting the following:
            ``(6) by the Secretary to collect any civil penalty under 
        this section'';
                    (B) in subsection (b)(3)--
                            (i) by striking ``subsections (c)(9) and 
                        (a)(6)'' and inserting ``subsections (c)(9), 
                        (c)(10), and (a)(6)''; and
                            (ii) by striking ``under subsection 
                        (c)(9))'' and inserting ``under subsections 
                        (c)(9) and (c)(10)), and except with respect to 
                        enforcement by the Secretary of section 712''; 
                        and
                    (C) in subsection (c)(10)--
                            (i) in the heading, by striking ``use of 
                        genetic information'' and inserting ``use of 
                        genetic information and parity in mental health 
                        and substance use disorder benefits''; and
                            (ii) in subparagraph (A)--
                                    (I) by striking ``any plan sponsor 
                                of a group health plan'' and inserting 
                                ``any plan sponsor or service provider, 
                                including any third-party 
                                administrator, managed behavioral 
                                health organization, or entity 
                                providing pharmacy benefit management 
                                services, of a group health plan''; and
                                    (II) by striking ``for any 
                                failure'' and all that follows through 
                                ``in connection with the plan.'' and 
                                inserting the following: ``for any 
                                failure by such sponsor or issuer, or 
                                by participation in such failure by a 
                                service provider, in connection with 
                                the plan-- ``
                            ``(i) to meet the requirements of 
                        subsection (a)(1)(F), (b)(3), (c), or (d) of 
                        section 702 or section 701 or 702(b)(1) with 
                        respect to genetic information; or
                            ``(ii) to meet the requirements of 
                        subsection (a) of section 712 with respect to 
                        parity in mental health and substance use 
                        disorder benefits.''.
    (c) IRC.--
            (1) In general.--Section 9812(a) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following:
            ``(9) Service provider liability.--In the case of a 
        violation of this section by a group health plan--
                    ``(A) a plan sponsor or a service provider, 
                including any third-party administrator, managed 
                behavioral health organization, or entity providing 
                pharmacy benefit management services, of such plan that 
                causes or contributes to such violation shall also be 
                liable for such violation; and
                    ``(B) the Secretary shall have the discretion to 
                determine the percentage of liability of between the 
                plan, sponsor, and service provider, as applicable.''.
            (2) Enforcement.--Section 4980D of such Code is amended by 
        adding at the end the following new subsection:
    ``(g) Application to Service Providers.--In the case of a failure 
of a group health plan to meet the requirements of section 9812, any 
reference in this section to such group health plan (and the reference 
in subsection (e)(1) to the employer) shall be treated as including a 
reference to any person made liable for such failure by section 
9812(a)(9).''.
    (d) Effective Date.--The amendments made by this section (other 
than the amendments made by subparagraphs (A) and (B) of subsection 
(b)(2)) shall apply with respect to plan years beginning after the date 
that is 1 year after the date of enactment of this Act.
                                 <all>
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