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Mental Health Parity Act Of

Definition of "Mental health parity act of 1996"

Act that prohibits insurance companies, group health plans, and health maintenance organizations from establishing lifetime limits or annual limits on mental health coverage that are lower than the limits on medical coverage. These plans that do not have limits on medical coverage cannot establish limits for mental health coverage. Under this act, the employer is not required to offer mental health or substance abuse benefits. This act applies to those companies with at least 50 employees and became effective for the plan year beginning on or after January 1, 1998.

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