Employer, Insurer Groups Urge Reset on Mental Health Parity Rule

Industry groups say they hope the Trump administration will revisit a number of mental health parity requirements after federal agencies paused enforcement on a key rule, signaling a regulatory revamp.

The Health and Human Services, Labor, and Treasury departments issued a formal notice of non-enforcement Thursday, halting any potential actions against employers until 18 months after an industry lawsuit challenging its legality is resolved. That litigation was paused on May 9.

The mental health parity rule was finalized in September 2024 under former President Joe Biden, creating a test for employers to compare their health plans’ mental health coverage to ...