The Trump administration revealed in a court filing that it does not intend to enforce a key regulation on mental health parity while it gives the rule another look.
In the final months of the Biden White House, the departments of Labor, the Treasury and Health and Human Services finalized a rule that sought to strengthen requirements under the 2008 Mental Health Parity and Addiction Equity Act, which mandates that mental health services are covered on par with physical health benefits.
In a court filing related to a lawsuit challenging the regulation, the Department of Justice (DOJ) said the administration will not enforce the rule as it considers its next steps, either by ultimately modifying it or rescinding it entirely. The DOJ is also asking the court to suspend the case while it works.
"Postponing further litigation pending the completion of this process will thus promote the efficient and orderly disposition of this litigation," the agency said in the filing.
The rule takes aim at limitations that may restrict the scope or duration of benefits, including utilization management strategies such as prior authorization, step therapy and network standards.
Under the rule, payers would be required to study and collect data on these barriers to treatment and make changes as needed.
The ERISA Industry Committee (ERIC), which represents large employers that provide benefits to employees, filed a suit against the three agencies in mid-January, arguing that the regulation oversteps their authorities.
The lawsuit also challenged the Jan. 1 start date of the mental health parity changes.
ERIC CEO James Gelfand said in a statement that the Trump administration's position recognizes how the final rule is "wholly unworkable."
"Today's action by the Trump Administration recognizes the need for greater examination to ensure employers have the clarity and flexibility they need to offer robust behavioral health benefits for a healthy, productive workforce," Gelfand said. "This critical first step paves the way for the administration to restore a sensible approach to parity rules for mental health and substance use disorder care."
Advocates pushing for a greater emphasis on mental health parity, however, had a more dejected take on the decision.
A group of leading organizations in this space—including the American Psychological Association, Mental Health America, the Legal Action Center, Inseparable, the National Alliance on Mental Illness and the National Health Law Program—said in a joint statement that they are "disheartened" by the Trump administration's response to the litigation.
They noted that the White House has put a focus on substance abuse specifically by renewing the public health emergency for the opioid epidemic, and recognized May as National Mental Health Awareness Month.
"These words must be backed by actions that meaningfully protect access to treatment, not just the interests of insurance companies," the organizations said.