A group health plan or policy that does not impose an annual or lifetime dollar limit on medical and surgical benefits may not impose such a limit on mental health benefits. MHPA protections do not extend to benefits for substance abuse or chemical dependency. Also, MHPA does not apply to any policies sold in the individual market. MHPA provisions for group health plans are effective beginning on or after January 1, 1998. MHPA includes a sunset provision under which the requirements do not apply to benefits for services furnished on or after September 30, 2001.
Parity means equality.
In the case of MHPA, it means equality in value with regard to annual and lifetime dollar limits on benefits. A health insurance issuer is an insurance company, insurance service, or insurance organization that is licensed by the State to be in the insurance business and is subject to State law for the regulation of insurance. Group health plans are not required to include mental health coverage in their benefits packages. The requirements under MHPA apply only to group health plans offering mental health benefits. There are two exemptions from the parity requirements.