Washington, D.C., January 30, 2026 – The ERISA Industry Committee (ERIC) submitted public comments this week to Maryland House and Senate lawmakers, warning against proposed legislation (HB 280 and SB 205) that would prematurely codify in state law the former Administration’s federal mental health parity rules that are currently suspended from enforcement as litigation is pending challenging their validity under federal law and the U.S. Constitution. As ERIC’s public comments outline, if the codified state rules conflict with future changes to federal law, it could lead to serious compliance conflicts and undermine how employers administer critical benefit plans. Because the proposed bills are based on a federal rule that is the subject of litigation and is under consideration by the federal government for recission, ERIC cautioned that both HB 280 and SB 205 would lead to potentially avoidable complications down the road.
“A healthy workforce is a productive workforce, and mental health is key to that productivity. While ERIC member companies share state lawmakers’ goal of providing access to high quality behavioral health care services, we are concerned that HB 280 and SB 205 would create duplicative and overly complex state regulatory standards that mirror federal rules which are currently suspended from enforcement and have a high likelihood of being rescinded and rewritten,” said Dillon Clair, Director of State Advocacy, ERIC. “Any future changes or updates to these federal standards, whether through regulatory or judicial action, would create an immediate conflict with the proposed Maryland regulatory standards. This would force the legislature to reconcile differences between state and federal law or risk of the creation of conflicting compliance regimes that amount to a Catch-22 for Maryland employers.”
ERIC has been a leader in shaping federal mental health and substance use disorder benefit parity policy for many years dating back to the enactment of the Mental Health Parity and Addiction Equity Act (“MHPAEA”). When the federal rule was issued in September 2024, ERIC expressed concerns that the rule was unworkable for employers who choose to offer behavioral health benefits for their workers. In early 2025, ERIC filed a lawsuit in the U.S. District Court for the District of Columbia challenging the rule on multiple grounds, including on the grounds that several provisions are arbitrary and capricious and contrary to law. In May 2025, the Departments of Labor, Health and Human Services, and the Treasury announced their intent to reconsider the rule, including whether to issue a notice of proposed rulemaking, rescinding or modifying the regulation.
ERIC is a national advocacy organization exclusively representing the largest employers in the United States in their capacity as sponsors of employee benefit plans for their nationwide workforces. With member companies that are leaders in every economic sector, ERIC is the voice of large employer plan sponsors on federal, state, and local public policies impacting their ability to sponsor benefit plans. ERIC member companies offer benefits to tens of millions of employees and their families, located in every state and city across the country.
The full text of ERIC’s comments to the House Health Committee can be found here.
The full text of ERIC’s comments to the Senate Finance Committee can be found here.
