What happens if compliance with MHPAEA increases plan costs significantly?

The correct choice reflects a key provision within the mental health parity regulations under the Mental Health Parity and Addiction Equity Act (MHPAEA). If compliance with MHPAEA results in significant increases in plan costs, the law allows for a temporary exemption for the following year. This is important as it provides plans with a flexible option to manage financial implications while still working toward compliance with mental health parity requirements.

This exemption is particularly relevant for plans that may be experiencing unexpected financial strains due to the requirement to provide comparable benefits for mental health and substance use disorder treatment alongside medical benefits. However, this exemption is usually limited in scope and duration, encouraging plans to continually seek ways to comply with the law in the future while ensuring they can manage their overall costs effectively.

Understanding this provision emphasizes the importance of balancing compliance with financial viability within employee benefit plans, ensuring that employers can maintain access to necessary mental health and substance use treatment without jeopardizing the overall stability of their health benefits offerings.