Mich. A.G. Nessel Praises House Passage of SB 27, for Mental Health and Substance Use Disorder Treatment Parity

LANSING, Michigan, May 2 -- Michigan Attorney General Dana Nessel issued the following news release on May 1, 2024:

Michigan Attorney General Dana Nessel praised today's passage of Senate Bill 27 in the Michigan House of Representatives by a vote of 93-12. The bill amends the insurance code to provide for parity of coverage of treatment for mental health and substance use disorder (SUD).

"Michigan residents need legislation like Senate Bill 27 to require health insurers to provide parity in their coverage for substance use disorder and mental health treatments, the same as they cover similar medical benefits," Nessel said. "We can strengthen the federal requirements by installing a state-level mandate and at the same time close loopholes that allow insurers to evade their responsibilities to consumers. A patient's need for treatment of substance use disorder, or any other mental health needs can be every bit as acute, urgent, and vital to a patient's well-being as any other medical intervention. As we combat the opioid epidemic across the State, we must ensure Michigan residents have access to all the health treatment services they require. I applaud the House for recognizing this and passing this much-need legislation."

While federal law does require insurance coverage for mental health and substance use disorders to be substantially the same and no more restrictive than medical or surgical benefits, it contains loopholes that permit insurers to avoid covering mental health and SUD treatments, and Michigan has no complimentary state-level law. SB 27 accomplishes parity by requiring insurers to provide these benefits in substantially the same manner and in the same classification as medical and surgical benefits.

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April 18, 2024

Dear Chairwoman Carter and members of the House Committee on Insurance and Financial Services:

Mental health is an essential component of any individual's well-being. And with the colossal cost of health insurance, no Michigander should worry about their health insurer refusing to cover necessary mental health services. That is why I strongly support SB 27.

At the federal level, the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) generally requires that insurance coverage for mental health and substance use disorders (SUD) be no more restrictive than coverage for medical surgical services. Recently, I expressed support for new federal regulations implementing the MHPAEA that would strengthen protections for consumers and close loopholes that permitted insurers to avoid covering an individual's mental health or SUD treatment needs.

Unlike most states, Michigan does not have its own mental health parity law. While MCL 500.3425 provides basic parity for SUD services, there is currently no state law providing mental health parity. Given the volatile nature of politics at the federal level, it would be wise for Michigan to pass its own parity law to protect consumers should the winds shift in Washington on this issue in the future.

The SB 27 ensures ongoing protection for Michiganders in the future because it requires health insurers to provide mental health and SUD benefits that are substantially the same as other medical or surgical benefits in the same classification. Importantly, it also restricts the nonquantitative treatment limitations that may be imposed by health insurers on mental health and SUD benefits by requiring the processes, strategies, evidentiary standards, or other factors used in developing and applying such limitations to be comparable and no more stringent than those used with respect to similar medical or surgical benefits.

My Office takes its role in protecting Michigan consumers extremely seriously, and the public health is also a paramount concern to me. Accordingly, I urge you to pass SB 27 and ensure no health insurer refuses to pay for any Michigander's necessary mental health and SUD treatment.

Sincerely,

Dana Nessel

Attorney General

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Original text here: https://www.michigan.gov/ag/news/press-releases/2024/05/01/ag-nessel-praises-house-passage-of-sb-27