H.R.3758 - Workers’ Disability Benefits Parity Act of 2025 (119th Congress)
Summary
H.R.3758, the Workers’ Disability Benefits Parity Act of 2025, aims to amend the Employee Retirement Income Security Act (ERISA) of 1974. The bill seeks to establish parity in the treatment of behavioral health and physical health conditions under disability benefit plans. It addresses concerns that current long-term disability plans often discriminate against workers with disabilities caused by behavioral health conditions.
The bill defines key terms such as 'disability benefit,' 'disability benefit plan,' 'mental health condition,' and 'substance use disorder.' It prohibits disability benefit plans from placing more restrictive limitations on benefits for disabilities arising from mental health conditions or substance use disorders compared to those arising from physical health conditions.
The Act also includes provisions for civil monetary penalties for violations and authorizes the Secretary of Labor to enforce the requirements. Furthermore, it mandates a study on the cost to plan sponsors of providing disability benefits for behavioral health conditions and requires outreach to educate plan sponsors on the effects of duration limits.
Expected Effects
The likely effect of this bill is to expand access to disability benefits for individuals with mental health conditions and substance use disorders. It aims to eliminate discriminatory practices in disability benefit plans. This could lead to increased costs for employers and insurers, but also improved outcomes for affected individuals.
It could also lead to increased litigation as individuals seek to enforce their rights under the new law. States may also need to update their laws to comply with the federal requirements.
Potential Benefits
- Ensures equal treatment for mental and physical health conditions in disability benefit plans.
- Expands access to disability benefits for individuals with mental health conditions and substance use disorders.
- Reduces discrimination in benefit limitations.
- Provides a mechanism for enforcement through civil monetary penalties.
- Mandates a study and outreach to better understand and address the costs and effects of the legislation.
Potential Disadvantages
- May increase costs for employers and insurers due to expanded coverage.
- Could lead to increased litigation related to enforcement and interpretation of the parity requirements.
- Requires additional administrative burden for compliance and reporting.
- Potential for unintended consequences or loopholes that could undermine the intent of the law.
- The cost study may reveal unforeseen financial burdens on plan sponsors.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve the well-being of workers by ensuring fair access to disability benefits. Congress has the power to regulate interstate commerce, and ERISA falls under this power, allowing the federal government to regulate employee benefit plans.
There are no apparent conflicts with individual liberties or rights protected by the Bill of Rights. The enforcement mechanisms, including civil penalties, are consistent with due process requirements.
However, some may argue that the expansion of federal regulation into employee benefits could be seen as an overreach of federal power, potentially infringing on states' rights, though this is a common area of federal regulation.
Impact Assessment: Things You Care About
This action has been evaluated across 19 key areas that matter to citizens. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).