Benefits Law Update
        Practical advice from Verrill attorneys

        DOL Signals Heightened Enforcement of Non-Quantitative Treatment Limitation Requirements

        by Kenneth F. Ginder on May 6, 2022

        Introduction. When the U.S. Department of Labor issued its biennial 2022 Mental Health Parity and Addiction Equity Act (“MHPAEA”) Report to Congress earlier this year, it outlined significant noncompliance by health plans. (Full Report here.) Specifically, it found that plans were not complying with the new comparative analysis requirement for non-quantitative treatment limitations (“NQTLs”) added by the Consolidated Appropriations Act of 2021 (“CAA”). The DOL informed Congress that it intends to devote substantial resources to “proactive and rigorous enforcement,” and, by all accounts, the DOL appears intent on fulfilling that promise. This post provides plan sponsors with a high-level overview of the NQTL rules, significant issues identified by the DOL in the Report, and what sponsors can do to prepare for the on-going enforcement efforts.

        Background. MHPAEA promotes equal access to treatment for mental health and substance use disorders (“MH/SUD”) by prohibiting coverage limitations that apply more restrictively to MH/SUD benefits than to medical/surgical benefits. Examples of limitations include higher copayments, separate deductibles, and stricter preauthorization or medical necessity reviews, as compared to other medical treatments covered by a plan.

        New Tool. Although the MHPAEA has long prohibited limits on MH/SUD coverage that do not comply with the parity mandate, it did not explicitly prescribe how plans were to demonstrate and document that they comply with the NQTL rules. Congress addressed that issue with the CAA. The CAA amends the MHPAEA and requires plans to perform and document comparative analyses of NQTLs they impose on MH/SUD coverage in order to demonstrate parity with medical/surgical benefits. Plans must provide the analyses to the DOL upon request. The Report states that this new “enforcement authority is the cornerstone of the DOL’s heightened enforcement efforts.”

        A detailed review of the information and analysis required in a comparative analysis is beyond the scope of this post, but the comparative analysis must include extensive detail. For example, it must include the evidentiary standards used to design and apply the NQTLs to MH/SUDs or medical/surgical benefits, and it must include specific findings regarding whether the plan complies with the MHPAEA.

        Enforcement Efforts. The DOL quickly began using the new CAA enforcement tool. From February 10, 2021 to October 31, 2021, it issued 156 letters to plans requesting their comparative analyses for NQTLs. The DOL found widespread noncompliance. For example, many plans had no such analyses and had to request additional time to respond. When initial responses were provided to the DOL, none were found to contain sufficient information to comply with the CAA requirements. In short, plans were unprepared.

        Common Parity Violations. The Report goes on to identify common NQTL parity violations with respect to MH/SUDs. The list is instructive:

        • Limitation or exclusion of applied behavior analysis (ABA) therapy or other services to treat autism spectrum disorder;
        • Billing requirements – licensed MH/SUD providers can bill the plan only through specific types of other providers;
        • Limitation or exclusion of medication-assisted treatment for opioid use disorder;
        • Preauthorization or precertification requirements;
        • Limitation or exclusion of nutritional counseling for MH/SUD conditions;
        • Provider experience requirements beyond licensure;
        • Care manager or specific supervision requirements for MH/SUD;
        • Limitation or exclusion of residential care or partial hospitalization to treat MH/SUD conditions;
        • “Effective treatment” requirements applicable only to SUD benefits;
        • Treatment plan requirements;
        • Employee assistance program referral requirements;
        • Exclusion of care for chronic MH/SUD conditions; and
        • Exclusion of speech therapy to treat MH/SUD conditions.

        Conclusion. The Report makes clear that many plans are not prepared to comply with the CAA comparative analysis requirement. It also makes clear that enforcement is a priority and will remain so for the foreseeable future. Considering these developments, plan sponsors should take three steps:

        1. Determine whether their plan imposes NQTLs, particularly the limitations identified above as most often violating the parity requirements;
        2. If the plan imposes NQTLs, engage a qualified expert to perform and document a thorough comparative analysis of the design and application of NQTLs that demonstrates compliance with the MHPAEA; and
        3. Once a comparative analysis has been performed, review it regularly in light of any changes to plan design or treatments to ensure the analysis remains up to date, relevant, and in compliance with the MHPAEA.

        We recommend implementing these steps as soon as practicable because the DOL is focused on this issue, and it appears compliance is low. Our own informal conversations with the DOL indicate MHPAEA is a top – if not the top – enforcement priority for the Department’s Employee Benefits Security Administration. We also note the DOL’s continuing outreach on this topic. Last Friday, the DOL discussed it with members of the Great Lakes Area TE/GE Council, and at the end of May it will be speaking with the Maine Employee Benefits Council. MHPAEA compliance is a priority for the DOL across the country, and plan sponsors should take notice.

        Please contact a member of our Employee Benefits & Executive Compensation Group if you have any questions regarding MHPAEA compliance.

        Benefits Law Update

        Verrill’s Benefits Law Update blog delivers timely insights and practical guidance on the ever-evolving landscape of employee benefits and executive compensation. Our blog provides up-to-date analysis and commentary on a wide range of topics, including timely updates on developments in law affecting employee benefit plans and executive compensation arrangements.

        Key Contact

        Subscribe

        Looking for more great content? Subscribe for regular legal updates and information delivered right to your inbox.

        Firm Highlights

        Press Releases

        97 Verrill Attorneys Recognized by Best Lawyers® 2027, Including Four Named Lawyers of the Year

        AUGUSTA, Maine, BANGOR, Maine, BOSTON, Mass., PORTLAND, Maine, and WESTPORT, Conn., (August 20, 2026) – Verrill is proud to announce that 97...
        Alerts and Newsletters

        SEC’s Proposed “Reg Crypto”: What Founders Need to Know

        Startup founders and emerging-growth companies have a number of options for raising capital under the federal securities laws, including Regulation D...
        Blog

        After 45 Years, the IRS Speaks on DCAP Nondiscrimination Testing – And It’s Good News

        Employers that provide a Dependent Care Assistance Program will be pleased to learn that for the first time in 45 years, the IRS has issued guidance...
        Media Mentions

        Robert Keach Discusses Bankruptcy Auction Strategy in Law360

        Verrill attorney Robert Keach spoke with Law360 article examining the complex bankruptcy auction process that resulted in the sale of 23 summer...
        Media Mentions

        Martha Gaythwaite Featured in Portland Press Herald Coverage of Sig Sauer Trial Victory

        Verrill attorney Martha Gaythwaite was highlighted in media coverage of a federal trial in Bangor involving firearm manufacturer Sig Sauer. As...
        Media Mentions

        Law360 Quotes Robert Keach on Senate Bill Affecting Small Business Restructurings

        Verrill attorney Robert Keach was recently quoted in a Law360 article discussing federal legislation that would permanently restore the $7.5 million...
        Alerts and Newsletters

        SAFEs and Preferred Stock – Key Deal Terms Every Founder Should Know

        SAFEs Before negotiating a term sheet for preferred stock, many early-stage companies, particularly at the seed stage, first raise capital through...
        Press Releases

        Verrill Welcomes Business Restructuring and Insolvency Attorney Nimra Tariq

        BOSTON, Massachusetts – Verrill is pleased to announce that Nimra Tariq has joined the firm’s Business Restructuring and Insolvency Group as an...
        Media Mentions

        Robert Keach Provides Commentary on First Brands Restructuring in Law360

        Verrill attorney Robert Keach was quoted in the Law360 article, "First Brands' Ch. 11 Plan Revives Angst Over Admin Claims," discussing First Brands...
        Press Releases

        Verrill Welcomes Construction Attorney Cassie Dufon

        PORTLAND, Maine – Verrill is pleased to welcome Cassie Dufon to the firm’s Construction Group as an Associate, resident in the firm’s Portland...
        Press Releases

        Verrill’s Wide-Ranging Private Wealth Law Practice Recognized in 2026 Chambers and Partners High Net Worth Guide

        BANGOR and PORTLAND, Maine and BOSTON, Mass. – Verrill attorneys Kenneth P. Brier, Anya F. Endsley, Kurt E. Klebe, Mary McQuillen, Nathaniel S....
        Blog

        Update on Status of Maine Packaging EPR

        In December 2024, Verrill published a blog post, Unwrapping Maine's Gift to the Environment: A New Packaging Stewardship Program Set to Launch in...