The publication is reproduced in full below:
MENTAL HEALTH MATTERS ACT
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speech of
HON. ROBERT C. ``BOBBY'' SCOTT
of virginia
in the house of representatives
Thursday, September 29, 2022
The House in Committee of the Whole House on the state of the Union had under consideration the bill (H.R. 7780) to support the behavioral needs of students and youth, invest in the school-based behavioral health workforce, and ensure access to mental health and substance use disorder benefits:
Mr. SCOTT of Virginia. Mr. Chair, I include in the Record the cost estimate prepared by the Congressional Budget Office for H.R. 7780, the Mental Health Matters Act. The cost estimate was not available at the time of the filing of the Committee report.
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 26, 2022. Hon. Robert C. (Bobby) Scott, Chairman, Committee on Education and Labor, House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 7780, the Mental Health Matters Act.
If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is Jessica Hale.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
H.R. 7780 would expand resources to address the mental health of K-12 students and staff members. The bill would authorize several grant programs to support school-based mental health services and providers. It would require postsecondary institutions that receive federal financial assistance to develop policies to identify and provide special accommodations to individuals with disabilities. Finally, it would prohibit mandatory arbitration clauses, class action waivers, and representation waivers in employer- sponsored benefit plans under the Employment Retirement Income Security Act of 1974.
CBO estimates that the bill would have no effect on direct spending and would increase revenues over the 2022-2032 period. The bill contains provisions that would increase spending subject to appropriation, but CBO has not completed an estimate of those costs.
ESTIMATED REVENUE EFFECTS OF H.R. 7780, THE MENTAL HEALTH MATTERS ACT
[As Posted on the Website of the House Committee on Rules on September 23, 2022, https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-
117HR7780RH-RCP117-67.pdf]
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By fiscal year, millions of dollars--
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2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2022-2027 2022-2032
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Increases in Revenues
Estimated Revenues................................... 0 0 2 3 3 3 3 3 4 4 4 11 29
On-Budget Revenues................................... 0 0 2 3 3 3 3 3 4 4 4 11 29
Off-Budget Revenues.................................. 0 0 0 0 0 0 0 0 0 0 0 0 0
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Section 602 of H.R. 7780 would allow the Secretary of Labor to impose civil monetary penalties on plan sponsors and administrators of group health plans if they fail to meet requirements of parity in mental health and substance use disorder benefits; the penalties would begin one plan year after the date of enactment. Section 602 also would clarify existing provisions regarding the re-adjudication and payment of benefits to remedy violations.
Based on the number of violations cited in Department of Labor reports regarding mental health parity enforcement, CBO projects that there would be about 11 violations of mental health parity requirements per year with a small portion of those violations resulting in penalty collections. In total, CBO estimates that penalty collections would increase revenues by about $29 million over the 2022-2032 period.
H.R. 7780 would impose private-sector mandates as defined in the Unfunded Mandates Reform Act by prohibiting mandatory arbitration clauses, class action waivers, and representation waivers in employee benefit plans covered by the Employee Retirement Income Security Act. It also would deem such provisions in existing contracts as unenforceable. The cost of the mandate would include any difference between the amounts received in rulings reached through the courts versus through arbitration. Because the resolution of arbitration proceedings is generally confidential, there is little data to compare with the outcome of traditional lawsuits. Furthermore, the number and type of claims that would be filed in the courts in the absence of arbitration is uncertain. Therefore, CBO cannot determine the cost of the mandate.
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SOURCE: Congressional Record Vol. 168, No. 159(1), Congressional Record Vol. 168, No. 159(2)
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