The Federal Mental Health Parity Addiction and Equity Act (Act) becomes effective with plan renewals on and after July 1, 2010.
The Act applies to groups that meet the Federal definition of “large group” – even if they are covered under a UnitedHealthcare Small Group contract. Small groups who meet the new federal definition of a large group will have the new required mental health/substance abuse benefits added to their plan. The mandate does not affect employers with 50 or fewer total employees using the Federal definition below.
The Federal definition of a” large group” includes:
- All fully insured and self-funded groups with 51 or more employees.
- Groups with between 2-50 employees if they had an average of 51 or more total employees, including seasonal and/or part-time employees, during the prior calendar year.
Client Notification
Beginning May 28, we will mail letters (posted above) about the Act to you and your 2-50 small-business clients with the July 2010 renewals. The letters, which include a certification form, will continue through June 2011 renewals and will either be sent directly or included in the renewal package.
Action Required
Please advise your clients of this Federal law and assist them in:
- Confirming the total number of employees in their groups including full-time, part-time and seasonal employees.
- Completing the certification form (included in the notification letter), sign and return it to us at either the FAX number or to the address indicated in the letter. Clients who fail to respond with the requested information may find that their mental health/substance abuse benefits are out of compliance with the Act.
- Ensuring us that their policy complies with the Act should they meet the federal definition of a large employer.
For more information, please contact your UnitedHealthcare representative.