On October 1, 2008, as part of a compromise financial rescue plan intended to address the country’s credit crisis, a bipartisan Senate majority passed H.R. 1424 by a 74-25 vote. Taken up after the House failed to pass a financial rescue plan on September 29, the Senate bill includes additional “sweeteners” intended to make the package more palatable to House members who voted down the House version of the financial bailout plan.

Of particular interest to employers, the Senate bill also includes a “mental health parity” provision which had been previously passed by overwhelming majorities in the House (H.R. 6983) and Senate (H.R. 6049) in separate bills on September 23, 2008. Like these previous bills, the mental health parity provision of H.R. 1424 requires health plans providing mental health coverage to provide mental health coverage in the same manner as other physical health conditions. The Senate bill exempts group health plans of employers with fewer than 50 employees from these new requirements.