The mental health parity and addiction equity act of 2008 (MHPAEA) was enacted with the goal of ensuring that mental health and substance use disorders are treated equally and in a parity with medical conditions. The MHPAEA requires covered entities to treat mental health and addiction disorders the same as other medical conditions.
The mental health parity and addiction equity act applies to both private and public sector employers, as well as to insurance companies, health plans, and other covered entities. The act also applies to individuals who are covered by a plan or program that receives federal financial assistance.
Under the MHPAEA, mental health conditions must be treated on an equal footing with physical illnesses. This means that insurers must cover treatment for mental illness in the same way they cover treatment for physical illnesses. Insurers must also cover addiction rehabilitation services on an equal basis with other forms of therapy.
The MHPAEA requires insurers to provide coverage for mental health care on an equal basis with coverage for physical healthcare services. Coverage for addiction treatments must be provided in the same manner as coverage for other types of treatments. Covered entities are not allowed to place any limitations on the type or amount of care that can be provided for mental health or addiction disorders.