[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5524 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5524
To provide for civil monetary penalties for violations of mental health
parity requirements.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 12, 2024
Mr. Murphy (for himself, Ms. Smith, and Mr. Lujan) introduced the
following bill; which was read twice and referred to the Committee on
Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To provide for civil monetary penalties for violations of mental health
parity requirements.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Parity Enforcement Act of 2024''.
SEC. 2. LIABILITY FOR, ENFORCEMENT OF, AND CIVIL MONETARY PENALTIES FOR
PARITY VIOLATIONS.
(a) PHSA.--
(1) In general.--Section 2726(a) of the Public Health
Service Act (42 U.S.C. 300gg-26(a)) is amended by adding at the
end the following:
``(9) Service provider liability.--In the case of a
violation of this section by a group health plan or a health
insurance issuer offering group or individual health insurance
coverage--
``(A) a plan sponsor or a service provider,
including any third-party administrator, managed
behavioral health organization, or entity providing
pharmacy benefit management services, of such plan or
coverage that causes or contributes to such violation
shall also be liable for such violation; and
``(B) the Secretary shall have the discretion to
determine the percentage of liability of between the
plan, issuer, sponsor, and service provider, as
applicable.''.
(2) Enforcement.--Section 2723 of the Public Health Service
Act (42 U.S.C. 300gg-22) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by adding at the end
the following: ``In the case of the
requirements of subsection (a) of section 2726
with respect to parity in mental health and
substance use disorder benefits, each State may
require that plan sponsors or service
providers, including any third-party
administrator, managed behavioral health
organization, or entity providing pharmacy
benefit management services, of such coverage
meet such requirements.''; and
(ii) in paragraph (2), by inserting ``,
plan sponsors, or service providers, including
any third-party administrator, managed
behavioral health organization, or entity
providing pharmacy benefit management
services,'' after ``health insurance issuers'';
and
(B) in subsection (b)(3)--
(i) in the heading, by striking ``genetic
information'' and inserting ``genetic
information and parity in mental health and
substance use disorder benefits''; and
(ii) in subparagraph (A), by striking ``any
failure'' and all that follows through ``in
connection with the plan.'' and inserting the
following: ``any failure of a health insurance
issuer or a plan sponsor or any participation
in such failure by a service provider,
including any third-party administrator,
managed behavioral health organization, or
entity providing pharmacy benefit management
services, in connection with a group health
plan--
``(i) to meet the requirements of
subsection (a)(1)(F), (b)(3), (c), or (d) of
section 2702 or section 2701 or 2702(b)(1) with
respect to genetic information; or
``(ii) to meet the requirements of
subsection (a) of section 2726 with respect to
parity in mental health and substance use
disorder benefits.''.
(b) ERISA.--
(1) In general.--Section 712(a) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1185a(a)) is amended by
adding at the end the following:
``(9) Service provider liability.--In the case of a
violation of this section by a group health plan or a health
insurance issuer offering group health insurance coverage--
``(A) a plan sponsor or a service provider,
including any third-party administrator, managed
behavioral health organization, or entity providing
pharmacy benefit management services, of such plan or
coverage that causes or contributes to such violation
shall also be liable for such violation; and
``(B) the Secretary shall have the discretion to
determine the percentage of liability of between the
plan, issuer, sponsor, and service provider, as
applicable.''.
(2) Enforcement.--Section 502 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1132) is amended--
(A) in subsection (a), by striking paragraph (6)
and inserting the following:
``(6) by the Secretary to collect any civil penalty under
this section'';
(B) in subsection (b)(3)--
(i) by striking ``subsections (c)(9) and
(a)(6)'' and inserting ``subsections (c)(9),
(c)(10), and (a)(6)''; and
(ii) by striking ``under subsection
(c)(9))'' and inserting ``under subsections
(c)(9) and (c)(10)), and except with respect to
enforcement by the Secretary of section 712'';
and
(C) in subsection (c)(10)--
(i) in the heading, by striking ``use of
genetic information'' and inserting ``use of
genetic information and parity in mental health
and substance use disorder benefits''; and
(ii) in subparagraph (A)--
(I) by striking ``any plan sponsor
of a group health plan'' and inserting
``any plan sponsor or service provider,
including any third-party
administrator, managed behavioral
health organization, or entity
providing pharmacy benefit management
services, of a group health plan''; and
(II) by striking ``for any
failure'' and all that follows through
``in connection with the plan.'' and
inserting the following: ``for any
failure by such sponsor or issuer, or
by participation in such failure by a
service provider, in connection with
the plan-- ``
``(i) to meet the requirements of
subsection (a)(1)(F), (b)(3), (c), or (d) of
section 702 or section 701 or 702(b)(1) with
respect to genetic information; or
``(ii) to meet the requirements of
subsection (a) of section 712 with respect to
parity in mental health and substance use
disorder benefits.''.
(c) IRC.--
(1) In general.--Section 9812(a) of the Internal Revenue
Code of 1986 is amended by adding at the end the following:
``(9) Service provider liability.--In the case of a
violation of this section by a group health plan--
``(A) a plan sponsor or a service provider,
including any third-party administrator, managed
behavioral health organization, or entity providing
pharmacy benefit management services, of such plan that
causes or contributes to such violation shall also be
liable for such violation; and
``(B) the Secretary shall have the discretion to
determine the percentage of liability of between the
plan, sponsor, and service provider, as applicable.''.
(2) Enforcement.--Section 4980D of such Code is amended by
adding at the end the following new subsection:
``(g) Application to Service Providers.--In the case of a failure
of a group health plan to meet the requirements of section 9812, any
reference in this section to such group health plan (and the reference
in subsection (e)(1) to the employer) shall be treated as including a
reference to any person made liable for such failure by section
9812(a)(9).''.
(d) Effective Date.--The amendments made by this section (other
than the amendments made by subparagraphs (A) and (B) of subsection
(b)(2)) shall apply with respect to plan years beginning after the date
that is 1 year after the date of enactment of this Act.
<all>