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S5524FEDERALIN_COMMITTEE
High Impact

Parity Enforcement Act of 2024

December 12, 2024

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Where This Stands

Introduced
Committee
Floor Vote
Passed
Signed

Currently IN_COMMITTEE. The next step in the legislative lifecycle is Floor Vote.

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

The Frame

What this does

If passed, this bill would hold third-party administrators and pharmacy benefit managers directly accountable for mental health coverage denials or inequities, potentially changing how these companies manage behavioral health benefits for millions of Americans covered by group health plans.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Pharmacy benefit managers

They are explicitly named as service providers who can be held liable for mental health parity violations.

Managed behavioral health organizations

They are explicitly named as service providers who can be held liable for mental health parity violations.

Group health plan sponsors

They face new potential liability for parity violations and may have liability shared with their service providers.

What changed

Current stage: IN_COMMITTEE.

What's next

Floor Vote.

Summary

This bill expands legal liability for violations to include third-party service providers, such as pharmacy benefit managers and managed behavioral health organizations. It grants the Secretary of Health and Human Services the authority to assign percentages of liability among health plans, sponsors, and these service providers when mental health coverage requirements are not met.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Why It Matters

If passed, this bill would hold third-party administrators and pharmacy benefit managers directly accountable for mental health coverage denials or inequities, potentially changing how these companies manage behavioral health benefits for millions of Americans covered by group health plans.

Frequently Asked Questions

Who would be held liable under this bill?
In addition to health plans and issuers, the bill makes s and service providers—such as third-party administrators, managed behavioral health organizations, and pharmacy benefit managers—liable if they cause or contribute to a violation.
When would these changes take effect?
Most of the amendments would apply to plan years beginning one year after the date the bill is enacted.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift100% confidence

Expansion of Liability to Third-Party Administrators

The bill represents a shift from holding only the health plan or issuer responsible for parity violations to including the service providers who actually manage the benefits.

Connected Entities

organizationPublic Health Service ActThe primary federal law being amended.Map →
organizationEmployee Retirement Income Security Act of 1974The primary federal law being amended.Map →
organizationSecretaryThe Secretary of Health and Human Services, responsible for enforcement.Map →
personLujanCo-sponsor of the bill in the Senate.Map →
personSmithCo-sponsor of the bill in the Senate.Map →
personMurphyLead sponsor of the bill in the Senate.Map →

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy60
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz30
    Current news / social attention level

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