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Technical Correction in Mental Health Parity Effective Date

On December 23, 2008, President Bush signed Senate Bill 3712 which made a technical correction to the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 ("Wellstone Act" or the "Act"). The amendment to the Act allows plans maintained pursuant to one or more collective bargaining agreements (CBA) to wait until the later of (i) the date on which the CBA relating to the plan terminates (determined without regard to any extension agreed to after the enactment of the Wellstone Act) or (ii) January 1, 2010, to comply with the Wellstone Act. The original bill stated that compliance must be achieved by January 1, 2009.

NOTE: The original terms of the Wellston Act remain unchanged. Please refer to our previous article on this Act for additional detail.  Please note that we have updated that article accordingly with this information.

To whom does the technical correction apply?
Employers who cover union employees under a CBA.

What steps should employers take to determine when they need to comply?
Employers should review their CBAs to determine when the CBA, in relation to their health plan, terminates. If the CBA that relates to the health plan terminates before January 1, 2010, Employers must comply by January 1, 2010. However, if the CBA does not terminate until July 31, 2011 for example, then the Employer will have until July 31, 2011 to comply with the Wellstone Act.

When should employers start discussions with their union representatives regarding this bill?
Employers should start talking now with their union representatives regarding the changes that will be needed to be made to their health plans in order to comply with the Wellstone Act. The Wellstone Act does not prohibit employers from making changes before the CBA terminates, if all parties are in agreement.

How do I determine if a plan is maintained pursuant to one or more CBAs?
Generally, a plan is maintained pursuant to one or more CBAs if the plan itself is subject to the terms of a CBA. If a plan covers union employees, that is a good indication that the plan may be maintained pursuant to one or more CBAs, but is not a guarantee. Unless the benefits provided under the plan were part of good faith bargaining negotiations between the employer and the union, generally speaking, it will not be considered to be maintained pursuant to a CBA.