; and (2) by adding at the end the following new subsection: (uu) Parity in mental health and substance use disorder benefits For purposes of subsection (a)(88), the requirements under this subsection are the following: (1) In general Regardless of whether a State plan or waiver of pays for medical assistance on a fee-for-service basis, capitated payment basis, through the use of 1 or more alternative payment models, or any combination thereof, the State shall ensure that the financial requirements and treatment limitations applicable to coverage of mental health or substance use disorder services provided under such plan or under a waiver of such plan comply with the requirements of section 2726(a) of the Public Health Service Act in the same manner as such requirements or limitations apply to a group health plan under such section. (2) Deemed compliance Coverage with respect to an individual described in section 1905(a)(4)(B) and covered under the State plan or waiver under section 1902(a)(10)(A) of the services described in section 1905(a)(4)(B) (relating to early and periodic screening, diagnostic, and treatment services defined in section 1905(r)) and provided in accordance with section 1902(a)(43), shall be deemed to satisfy the requirements of paragraph (1). . (b) Managed care organizations and payment arrangements (1) In general Section 1932(b)(8) of the Social Security Act ( 42 U.S.C. 1396u–2(b)(8) ) is amended to read as follows: (8) Compliance with certain maternity, parity in mental health or substance use disorder benefits, and other coverage requirements (A) In general Each medicaid managed care organization shall comply with the requirements of subpart 2 of part A of title XXVII of the Public Health Service Act insofar as such requirements apply and are effective with respect to a health insurance issuer that offers group health insurance coverage. (B) Parity in mental health or substance use disorder benefits The financial requirements and treatment limitations applicable to coverage of mental