H.R. 3758: Workers’ Disability Benefits Parity Act of 2025

The Workers’ Disability Benefits Parity Act of 2025 aims to ensure equal treatment of behavioral health conditions relative to physical health conditions in employee disability benefit plans. Here are the key elements of the bill:

Purpose

The Act amends the Employee Retirement Income Security Act (ERISA) to establish requirements for disability benefit plans so that disabilities arising from mental health conditions and substance use disorders are treated similarly to those arising from physical health conditions.

Findings and Sense of Congress

• The ERISA Advisory Council found that discriminatory limitations exist in long-term disability benefit plans that adversely affect workers whose disabilities are due to behavioral health conditions.
• It is considered discriminatory to impose limitations on benefits for behavioral health conditions that do not apply to physical health conditions.
• Disability benefits should be available without regard to the cause of disability.

Requirements for Disability Benefit Plans

The Act requires that:

• Disability benefit plans must not impose any limitations, exclusions, or restrictions on benefits related to mental health conditions or substance use disorders that are more restrictive than those for physical health conditions.
• Any physical health conditions resulting from disabilities caused by mental health conditions or substance use disorders must be considered part of the same disability.

Civil Penalties

The Act allows for civil monetary penalties against any entity that violates these provisions. This applies to sponsors, administrators, and service providers of disability benefit plans:

• The Secretary of Labor may assess civil penalties against violators.
• The penalties can accumulate based on the duration of noncompliance.

Enforcement

State authorities are empowered to enforce these provisions regarding disability benefits offered within their jurisdiction. If a state fails to enforce the standards, the Secretary of Labor can intervene:

• Individuals aggrieved by noncompliance may pursue legal action in state or federal court.
• The Secretary of Labor has the authority to enforce compliance through civil penalties.

Implementation and Financial Considerations

• The Secretary of Labor will conduct a study on the costs of providing equal disability benefits for behavioral health conditions, along with offering educational outreach regarding the impact of these changes.
• The Act authorizes $10 million annually for five years to support its implementation.
• The amendments will take effect for plan years beginning 18 months after enactment.

Special Provisions for Collective Bargaining Agreements

For plans established by collective bargaining agreements ratified before enactment, the new provisions will not apply until after the termination of those agreements or 18 months after the enactment, whichever is later.

Effective Date

The requirements of the Act will apply to any new plan years that start after 18 months from when the bill becomes law.

Relevant Companies

• None found