Delaware Business Insurance Update from CNC Insurance Associates. "Mental Parity Laws a Big Headache for Small Business" 10-2-15

Effective in 2014, the Federal Government enacted parity laws for mental health programs in employer sponsored health plans. The legislation taken from the Mental Health Parity and Addiction Equity act of 2008, puts the burden of compliance on small business. Gone are the financial and treatment limits that affect out of pocket costs. Also the number of mental health days and visits are no longer limited.
What does this mean for small business? It means that employers are going to have to review their plan options with mental health in mind. If the plans they are choosing to offer for their employees do not have mental health parity with other coverages,  then the small business owner could be in violation of the law. To make matters even more confusing, States that have similiar laws must also be complied with. If your State does not have parity laws on the books then the Federal legislation will dictate.
Small business owners should consult with their health administrators and brokers to determine if their health plans fulfill the regulatory tests of the law. Until next time be careful out there and know your risks.

G. Kevin Nemith,  President CNC Insurance Associates Inc. & The Small Business Insurance Center
Serving DE, MD, VA, PA, & NJ
www.cncinsurance.com
www.bizinsurancetv.org

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