Sponsors (2)
The bill substantially expands and enforces parity for behavioral-health disability benefits—improving access and accountability for people with mental-health and substance-use disorders—but does so at the likely cost of higher compliance, litigation, and insurance-related expenses and with significant regulatory authority granted to the Secretary.
People with mental health or substance use disorders will be treated the same as people with physical disabilities for long-term disability benefits, reducing discriminatory denials and expanding access.
Plan participants and beneficiaries will face stronger enforcement: the Secretary can impose and collect civil penalties and beneficiaries can seek relief in state or federal court, increasing compliance incentives for plans and issuers.
Federal implementation support—an 18-month actuarial study, explicit regulatory authority for the Secretary, and dedicated funding—will produce data, guidance, and resources that help improve transparency, enforcement, and plan design.
Middle-class families, employers, and small-business owners may face higher premiums or plan costs if expanded parity and enforcement raise insurers' or sponsors' expenses.
Sponsors, administrators, and service providers risk large daily fines and increased compliance costs tied to each affected participant, which could be especially burdensome for smaller providers.
Broad private rights of action and strengthened enforcement may spur more litigation against plans and issuers, increasing legal costs and administrative burdens for employers and insurers.
Based on analysis of 5 sections of legislative text.
Requires parity for disability benefits: mental-health/substance-use disabilities must be treated like physical-health disabilities, adds enforcement and penalties, funds Labor study/implementation.
Introduced June 5, 2025 by Mark James Desaulnier · Last progress June 5, 2025
Requires that disability benefits for mental health conditions and substance use disorders be treated the same as those for physical-health disabilities in government plans and in plans sold by insurers, bans shorter limits or extra exclusions for behavioral-health disabilities, and creates enforcement tools and penalties for noncompliance. It authorizes the Labor Department to enforce the rules, allows individuals to sue, requires a Labor study and education effort, funds implementation, and makes the rules effective for plan years beginning after 18 months (with a delay rule for collectively bargained plans).