I 
110TH CONGRESS 
2D SESSION 
H. R. 6983 
To amend section 712 of the Employee Retirement Income Security Act 
of 1974, section 2705 of the Public Health Service Act, and section 
9812 of the Internal Revenue Code of 1986 to require equity in the 
provision of mental health and substance-related disorder benefits under 
group health plans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 22, 2008 
Mr. KENNEDY (for himself, Mr. RAMSTAD, Mr. DINGELL, Mr. RANGEL, Mr. 
PALLONE, Mr. ANDREWS, Mr. STARK, and Mr. WAXMAN) introduced the 
following bill; which was referred to the Committee on Energy and Com-
merce, and in addition to the Committees on Education and Labor and 
Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend section 712 of the Employee Retirement Income 
Security Act of 1974, section 2705 of the Public Health 
Service Act, and section 9812 of the Internal Revenue 
Code of 1986 to require equity in the provision of mental 
health and substance-related disorder benefits under 
group health plans, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Paul Wellstone and 
Pete Domenici Mental Health Parity and Addiction Eq-
uity Act of 2008’’. 
SEC. 2. MENTAL HEALTH PARITY. 
(a) AMENDMENTS TO ERISA.—Section 712 of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1185a) is amended— 
(1) in subsection (a), by adding at the end the 
following: 
‘‘(3) FINANCIAL REQUIREMENTS AND TREAT-
MENT LIMITATIONS.— 
‘‘(A) IN GENERAL.—In the case of a group 
health plan (or health insurance coverage of-
fered in connection with such a plan) that pro-
vides both medical and surgical benefits and 
mental health or substance use disorder bene-
fits, such plan or coverage shall ensure that— 
‘‘(i) the financial requirements appli-
cable to such mental health or substance 
use disorder benefits are no more restric-
tive than the predominant financial re-
quirements applied to substantially all 
medical and surgical benefits covered by 
the plan (or coverage), and there are no 
separate cost sharing requirements that 
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are applicable only with respect to mental 
health or substance use disorder benefits; 
and 
‘‘(ii) the treatment limitations applica-
ble to such mental health or substance use 
disorder benefits are no more restrictive 
than the predominant treatment limita-
tions applied to substantially all medical 
and surgical benefits covered by the plan 
(or coverage) and there are no separate 
treatment limitations that are applicable 
only with respect to mental health or sub-
stance use disorder benefits. 
‘‘(B) DEFINITIONS.—In this paragraph: 
‘‘(i) FINANCIAL REQUIREMENT.—The 
term 
‘financial 
requirement’ 
includes 
deductibles, copayments, coinsurance, and 
out-of-pocket expenses, but excludes an ag-
gregate lifetime limit and an annual limit 
subject to paragraphs (1) and (2). 
‘‘(ii) PREDOMINANT.—A financial re-
quirement or treatment limit is considered 
to be predominant if it is the most com-
mon or frequent of such type of limit or 
requirement. 
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‘‘(iii) TREATMENT LIMITATION.—The 
term ‘treatment limitation’ includes limits 
on the frequency of treatment, number of 
visits, days of coverage, or other similar 
limits on the scope or duration of treat-
ment. 
‘‘(4) AVAILABILITY OF PLAN INFORMATION.— 
The criteria for medical necessity determinations 
made under the plan with respect to mental health 
or substance use disorder benefits (or the health in-
surance coverage offered in connection with the plan 
with respect to such benefits) shall be made avail-
able by the plan administrator (or the health insur-
ance issuer offering such coverage) in accordance 
with regulations to any current or potential partici-
pant, beneficiary, or contracting provider upon re-
quest. The reason for any denial under the plan (or 
coverage) of reimbursement or payment for services 
with respect to mental health or substance use dis-
order benefits in the case of any participant or bene-
ficiary shall, on request or as otherwise required, be 
made available by the plan administrator (or the 
health insurance issuer offering such coverage) to 
the participant or beneficiary in accordance with 
regulations. 
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vidual)’’ after ‘‘at least 2’’ the first place 
that such appears; and 
(ii) by striking ‘‘and who employs at 
least 2 employees on the first day of the 
plan year’’; and 
(B) by striking paragraph (2) and insert-
ing the following: 
‘‘(2) COST EXEMPTION.— 
‘‘(A) IN
GENERAL.—With respect to a 
group health plan (or health insurance coverage 
offered in connection with such a plan), if the 
application of this section to such plan (or cov-
erage) results in an increase for the plan year 
involved of the actual total costs of coverage 
with respect to medical and surgical benefits 
and mental health and substance use disorder 
benefits under the plan (as determined and cer-
tified under subparagraph (C)) by an amount 
that exceeds the applicable percentage described 
in subparagraph (B) of the actual total plan 
costs, the provisions of this section shall not 
apply to such plan (or coverage) during the fol-
lowing plan year, and such exemption shall 
apply to the plan (or coverage) for 1 plan year. 
An employer may elect to continue to apply 
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mental health and substance use disorder parity 
pursuant to this section with respect to the 
group health plan (or coverage) involved regard-
less of any increase in total costs. 
‘‘(B) APPLICABLE PERCENTAGE.—With re-
spect to a plan (or coverage), the applicable 
percentage described in this subparagraph shall 
be— 
‘‘(i) 2 percent in the case of the first 
plan year in which this section is applied; 
and 
‘‘(ii) 1 percent in the case of each 
subsequent plan year. 
‘‘(C) DETERMINATIONS BY ACTUARIES.— 
Determinations as to increases in actual costs 
under a plan (or coverage) for purposes of this 
section shall be made and certified by a quali-
fied and licensed actuary who is a member in 
good standing of the American Academy of Ac-
tuaries. All such determinations shall be in a 
written report prepared by the actuary. The re-
port, and all underlying documentation relied 
upon by the actuary, shall be maintained by the 
group health plan or health insurance issuer for 
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a period of 6 years following the notification 
made under subparagraph (E). 
‘‘(D) 6-MONTH
DETERMINATIONS.—If a 
group health plan (or a health insurance issuer 
offering coverage in connection with a group 
health plan) seeks an exemption under this 
paragraph, determinations under subparagraph 
(A) shall be made after such plan (or coverage) 
has complied with this section for the first 6 
months of the plan year involved. 
‘‘(E) NOTIFICATION.— 
‘‘(i) IN
GENERAL.—A group health 
plan (or a health insurance issuer offering 
coverage in connection with a group health 
plan) that, based upon a certification de-
scribed under subparagraph (C), qualifies 
for an exemption under this paragraph, 
and elects to implement the exemption, 
shall promptly notify the Secretary, the ap-
propriate State agencies, and participants 
and beneficiaries in the plan of such elec-
tion. 
‘‘(ii) REQUIREMENT.—A notification 
to the Secretary under clause (i) shall in-
clude— 
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‘‘(I) a description of the number 
of covered lives under the plan (or 
coverage) involved at the time of the 
notification, and as applicable, at the 
time of any prior election of the cost- 
exemption under this paragraph by 
such plan (or coverage); 
‘‘(II) for both the plan year upon 
which a cost exemption is sought and 
the year prior, a description of the ac-
tual total costs of coverage with re-
spect to medical and surgical benefits 
and mental health and substance use 
disorder benefits under the plan; and 
‘‘(III) for both the plan year 
upon which a cost exemption is sought 
and the year prior, the actual total 
costs of coverage with respect to men-
tal health and substance use disorder 
benefits under the plan. 
‘‘(iii) CONFIDENTIALITY.—A notifica-
tion to the Secretary under clause (i) shall 
be confidential. The Secretary shall make 
available, upon request and on not more 
than an annual basis, an anonymous 
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itemization of such notifications, that in-
cludes— 
‘‘(I) a breakdown of States by 
the size and type of employers submit-
ting such notification; and 
‘‘(II) a summary of the data re-
ceived under clause (ii). 
‘‘(F) AUDITS
BY
APPROPRIATE
AGEN-
CIES.—To determine compliance with this para-
graph, the Secretary may audit the books and 
records of a group health plan or health insur-
ance issuer relating to an exemption, including 
any actuarial reports prepared pursuant to sub-
paragraph (C), during the 6-year period fol-
lowing the notification of such exemption under 
subparagraph (E). A State agency receiving a 
notification under subparagraph (E) may also 
conduct such an audit with respect to an ex-
emption covered by such notification.’’; 
(4) in subsection (e), by striking paragraph (4) 
and inserting the following: 
‘‘(4) MENTAL HEALTH BENEFITS.—The term 
‘mental health benefits’ means benefits with respect 
to services for mental health conditions, as defined 
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under the terms of the plan and in accordance with 
applicable Federal and State law. 
‘‘(5) SUBSTANCE USE DISORDER BENEFITS.— 
The term ‘substance use disorder benefits’ means 
benefits with respect to services for substance use 
disorders, as defined under the terms of the plan 
and in accordance with applicable Federal and State 
law.’’; 
(5) by striking subsection (f); 
(6) by inserting after subsection (e) the fol-
lowing: 
‘‘(f) SECRETARY REPORT.—The Secretary shall, by 
January 1, 2012, and every two years thereafter, submit 
to the appropriate committees of Congress a report on 
compliance of group health plans (and health insurance 
coverage offered in connection with such plans) with the 
requirements of this section. Such report shall include the 
results of any surveys or audits on compliance of group 
health plans (and health insurance coverage offered in 
connection with such plans) with such requirements and 
an analysis of the reasons for any failures to comply. 
‘‘(g) NOTICE AND ASSISTANCE.—The Secretary, in 
cooperation with the Secretaries of Health and Human 
Services and Treasury, as appropriate, shall publish and 
widely disseminate guidance and information for group 
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