What federal law required health insurance policies to include coverage for mental illnesses, including alcohol or substance abuse?

• A. Network
• B. Hospital System
• C. Mental Health Parity and Addiction Equity Act of 2008
• D. Voluntary Hospitals

Answer: (C)

This question centers on parity in health insurance coverage for mental health and addiction services. The best answer is the Mental Health Parity and Addiction Equity Act of 2008. This law requires group health plans and insurers that offer mental health or substance use disorder benefits to treat those benefits no less favorably than medical or surgical benefits. In practical terms, if a plan covers medical/surgical care with certain deductibles, copays, or visit limits, it must offer mental health and addiction benefits under the same financial requirements and treatment limits. This parity aims to prevent plans from imposing stricter rules or lower coverage for mental health and substance use treatment, improving access to needed care. The other options are not federal laws governing coverage; they describe types of networks or hospital arrangements, not statutes that mandate parity in benefits.