[Federal Register: February 2, 2010 (Volume 75, Number 21)]
[Proposed Rules]
[Page 5452-5453]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02fe10-20]
[[Page 5452]]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 54
[REG-120692-09]
RIN 1545-BI70
Regulations Under the Paul Wellstone and Pete Domenici Mental
Health Parity and Addiction Equity Act of 2008
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations and withdrawal of notice of proposed rulemaking.
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SUMMARY: Elsewhere in this issue of the Federal Register, the IRS is
issuing temporary regulations under the Paul Wellstone and Pete
Domenici Mental Health Parity and Addiction Equity Act of 2008
(MHPAEA). MHPAEA prohibits group health plans providing mental health
or substance use disorder benefits along with medical/surgical benefits
from imposing more restrictive financial requirements or treatment
limitations with respect to the mental health or substance use disorder
benefits than the predominant ones imposed with respect to
substantially all medical/surgical benefits. The IRS is issuing the
temporary regulations at the same time that the Employee Benefits
Security Administration of the U.S. Department of Labor and the Centers
for Medicare & Medicaid Services of the U.S. Department of Health and
Human Services are issuing substantially similar interim final
regulations with respect to MHPAEA for group health plans and issuers
of health insurance coverage offered in connection with a group health
plan under the Employee Retirement Income Security Act of 1974 and the
Public Health Service Act. The temporary regulations provide guidance
to employers and group health plans relating to the group health plan
mental health and substance use disorder parity requirements. The text
of those temporary regulations also serves as the text of these
proposed regulations. This document also withdraws the notice of
proposed rulemaking relating to mental health parity requirements for
group health plans that was published on December 22, 1997 (REG-109704-
97, 62 FR 66967).
DATES: Written or electronic comments and requests for a public hearing
must be received by May 3, 2010.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-120692-09), room
5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered to:
CC:PA:LPD:PR (REG-120692-09), Courier's Desk, Internal Revenue Service,
1111 Constitution Avenue, NW., Washington, DC 20224. Alternatively,
taxpayers may submit comments electronically via the Federal
eRulemaking Portal at http://www.regulations.gov (IRS REG-120692-09).
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Russ
Weinheimer at 202-622-6080; concerning submissions of comments,
Richard.A.Hurst@irscounsel.treas.gov, 202-622-7180 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information contained in this notice of proposed
rulemaking have been submitted to the Office of Management and Budget
for review in accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)). Comments on the collections of information should be
sent to the Office of Management and Budget, Attn: Desk Officer for the
Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC 20503, with copies to the Internal Revenue
Service, Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP,
Washington, DC 20224. Comments on the collections of information should
be received by April 5, 2010. Comments are specifically requested
concerning:
Whether the proposed collections of information are
necessary for the proper performance of the functions of the Internal
Revenue Service, including whether the information will have practical
utility;
The accuracy of the estimated burdens associated with the
proposed collections of information (see the preamble to the temporary
regulations published elsewhere in this issue of the Federal Register);
How to enhance the quality, utility, and clarity of the
information to be collected;
How to minimize the burden of complying with the proposed
collections of information, including the application of automated
collection techniques or other forms of information technology; and
Estimates of capital or start-up costs and costs of
operation, maintenance, and purchase of services to provide
information.
The collections of information are in Sec. 54.9812-1 (see the
temporary regulations published elsewhere in this issue of the Federal
Register). MHPAEA includes two new disclosure provisions. First, the
criteria for medical necessity determinations made under a group health
plan with respect to mental health or substance use disorder benefits
must be made available in accordance with regulations by the plan
administrator to any current or potential participant, beneficiary, or
contracting provider upon request. MHPAEA also requires the reason for
any denial under a group health plan of reimbursement or payment for
services with respect to mental health or substance use disorder
benefits in the case of any participant or beneficiary must be made
available upon request or as otherwise required by the plan
administrator to the participant or beneficiary in accordance with
regulations. The likely respondents are business or other for-profit
institutions, and nonprofit institutions. Responses to these
collections of information are mandatory.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a valid
control number assigned by the Office of Management and Budget.
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background
The temporary regulations published elsewhere in this issue of the
Federal Register revise Sec. 54.9812-1T to the Miscellaneous Excise
Tax Regulations. The proposed and temporary regulations are being
published as part of a joint rulemaking with the Department of Labor
and the Department of Health and Human Services (the joint rulemaking).
The text of those temporary regulations also serves as the text of
these proposed regulations. The preamble to the temporary regulations
explains the temporary regulations.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. Therefore, a regulatory assessment is not required. It has also
been determined that section 553(b) of the Administrative Procedure Act
(5 U.S.C. chapter 5) does not apply to this proposed regulation. It is
hereby certified that the collections of
[[Page 5453]]
information contained in this notice of proposed rulemaking will not
have a significant impact on a substantial number of small entities.
Accordingly, a regulatory flexibility analysis is not required.
The proposed rule generally applies to employers who provide health
coverage through group health plans to employees that include benefits
for mental health or substance use disorder conditions. The IRS expects
that the rules to reduce the compliance burden imposed on plans and
issurers by clarifying definitions and terms contained in the statute
and providing examples of acceptable methods to comply with specific
provisions. MHPAEA and the regulations under it do not apply to
employers with 50 or fewer employees. Moreover, small employers subject
to the rule that have more than 50 employees will generally provide any
health coverage through insurance or a third-party administrator. The
issuers of insurance or other third-party administrators of the health
plans, rather than the small employers, will as a practical matter,
satisfy the requirements of the rules in order to provide a marketable
product. For this reason, the burden imposed by the reporting
requirement of the statute and this notice of proposed rulemaking on
small entities is expected to be near zero. For further information and
for analyses relating to the joint rulemaking, see the preamble to the
joint rulemaking. Pursuant to section 7805(f) of the Internal Revenue
Code, this regulation has been submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on its impact
on small business.
Comments and Requests for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written comments (a signed original
and eight (8) copies) or electronic comments that are submitted timely
to the IRS. Comments are specifically requested on the clarity of the
proposed regulations and how they may be made easier to understand. All
comments will be available for public inspection and copying. A public
hearing may be scheduled if requested in writing by a person that
timely submits written comments. If a public hearing is scheduled,
notice of the date, time, and place for the hearing will be published
in the Federal Register.
Drafting Information
The principal author of these proposed regulations is Russ
Weinheimer, Office of the Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities), IRS. The proposed regulations, as well
as the temporary regulations, have been developed in coordination with
personnel from the U.S. Department of Labor and the U.S. Department of
Health and Human Services.
List of Subjects in 26 CFR Part 54
Excise taxes, Health care, Health insurance, Pensions, Reporting
and recordkeeping requirements.
Withdrawal of Proposed Regulations
Accordingly, under the authority of 26 U.S.C. 7805, the notice of
proposed rulemaking (REG-109704-97) that was published in the Federal
Register on Monday, December 22, 1997 (62 FR 66967) is withdrawn.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 54 is proposed to be amended as follows:
PART 54--PENSION EXCISE TAXES
Paragraph 1. The authority citation for part 54 is amended by
adding an entry in numerical order to read as follows:
Authority: 26 U.S.C. 7805. * * *
Section 54.9812-1 also issued under 26 U.S.C. 9833. * * *
Par. 2. Section 54.9812-1 is added to read as follows:
Sec. 54.9812-1 Parity in mental health and substance use disorder
benefits.
[The text of proposed Sec. 54.9812-1 is the same as the text of
Sec. 54.9812-1T published elsewhere in this issue of the Federal
Register].
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2010-2166 Filed 1-29-10; 8:45 am]
BILLING CODE 4830-01-P