Senate committee passes legislation that includes the OT Mental Health Parity Act and reduction in Medicare fee schedule cuts

The Senate Finance Committee voted today on the Better Mental Health Care, Lower-Cost Drugs and Extenders Act, which includes multiple healthcare and mental health provisions. Notably, the bill included language from the Occupational Therapy Mental Health Parity Act (S. 1592) as well as a provision to reduce cuts to the 2024 Medicare Physician Fee Schedule by 1.25%.

The goal of the Occupational Therapy Mental Health Parity Act is to help occupational therapy practitioners (OTPs) provide services to a person with a mental health or substance use disorder under Medicare. Current rules allow OTPS to provide services to a person with one of these diagnoses, using OT billing codes, however, there are many barriers to OTPs providing this care. The bill, introduced by Senators Maggie Hassen (D-NH) and Tim Scott (R-SC), would direct Medicare to provide education to stakeholders about the availability of substance use disorder or mental health disorder services furnished by occupational therapy practitioners to Medicare beneficiaries. In the past, similar education by Medicare has expanded access to occupational therapy services, including the provision of maintenance therapy, and services to people with dementia.

If signed into law, the Better Mental Health Care, Lower-Cost Drugs and Extenders Act would also reduce scheduled cuts to the 2025 Medicare Physician Fee Schedule conversion factor from 3.4% to 2.15%. In addition to improving mental health services and extending expiring policies related to the Medicare Physician Fee Schedule, this bill would also more closely regulate Medicare pharmacy benefits managers, in an effort to reduce prescription drug prices.

The bill must now be voted on by the full Senate, after which negotiations will begin with the House of Representatives on an end-of-year package of bills focused on Medicare and mental health. The Occupational Therapy Mental Health Parity Act is non-controversial and has a good chance of being included in this end of year package.

Visit the Senate Finance Committee website to learn more about the Better Mental Health Care, Lower-Cost Drugs and Extenders Act.