Ill STAT. 1084 PUBLIC LAW 105-34—AUG. 5, 1997 benefits by substituting for the applicable annual limit an average annual limit that is computed taking into account the weighted average of the annual limits applicable to such categories. "(b) CONSTRUCTION.— Nothing in this section shall be construed— "(1) as requiring a group health plan to provide any mental health benefits; or "(2) in the case of a group health plan that provides mental health benefits, as affecting the terms and conditions (including cost sharing, limits on numbers of visits or days of coverage, and requirements relating to medical necessity) relating to the amount, duration, or scope of mental health benefits under the plan, except as specifically provided in subsection (a) (in regard to parity in the imposition of aggregate lifetime limits and annual limits for mental health benefits). " (c) EXEMPTIONS.— "(1) SMALL EMPLOYER EXEMPTION. —T his section shall not apply to any group health plan for any plan year of a small employer (as defined in section 4980D(d)(2)). "(2) INCREASED COST EXEMPTION.— Th is section shall not apply with respect to a group health plan if the application of this section to such plan results in an increase in the cost under the plan of at least 1 percent. " (d) SEPARATE APPLICATION TO EACH OPTION OFFERED.— In the case of a group health plan that offers a participant or beneficiary two or more benefit package options under the plan, the requirements of this section shall be applied separately with respect to each such option. "(e) DEFINITIONS.— For purposes of this section: "(1) AGGREGATE LIFETIME LIMIT.— The term 'aggregate lifetime limit' means, with respect to benefits under a group health plan, a dollar limitation on the total amount that may be paid with respect to such benefits under the plan with respect to an individual or other coverage unit. "(2) ANNUAL LIMIT. — The term 'annual limit' means, with respect to benefits under a group health plan, a dollar limitation on the total amount of benefits that may be paid with respect to such benefits in a 12-month period under the plan with respect to an individual or other coverage unit. "(3) MEDICAL OR SURGICAL BENEFITS. —The term 'medical or surgical benefits' means benefits with respect to medical or surgical services, as defined under the terms of the plan, but does not include mental health benefits. "(4) MENTAL HEALTH BENEFITS.— The term 'mental health benefits' means benefits with respect to mental health services, as defined under the terms of the plan, but does not include benefits with respect to treatment of substance abuse or chemical dependency. "(f) SUNSET. —This section shall not apply to benefits for services furnished on or after September 30, 2001.'. (b) CONFORMING AMENDMENTS. — (1) Chapter 100 of such Code is further amended— (A) in the last sentence of section 9801(c)(1), by striking "section 9805(c)" and inserting "section 9832(c)"; (B) in section 9831(b), by striking "9805(c)(1)" and inserting "9832(c)(1)";
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