To extend for one year parity in the application of certain limits to mental health benefits, and for other purposes.

Amends the Internal Revenue Code, the Employee Retirement Income Security Act of 1974 (ERISA), and the Public Health Service Act to extend until December 31, 2008, mental health parity provisions, which require group health plans to treat equally mental health benefits and medical and surgical benefits for purposes of lifetime limits or annual limits on benefits covered by the plan.

Amends title XVIII (Medicare) of the Social Security Act to direct the Centers for Medicare & Medicaid Services to take all necessary steps to participate in the Federal Payment Levy Program as soon as possible and ensure that: (1) at least 50% of all payments under parts A (Hospital Insurance) and B (Supplementary Medical Insurance) are processed through such program within one year after enactment of this Act; (2) at least 75% of all such payments are processed through such program within two years; and (3) all such payments are processed through such program by September 30, 2011.

Requires the Financial Management Service and the Internal Revenue Service (IRS) to provide assistance to the Centers for Medicare & Medicaid Services to ensure that all payments are included in the Federal Payment Levy Program by the deadlines specified.

Directs the Department of Health and Human Services (HHS) to offset Medicare payments by the amount of the payee's delinquent federal debt.

Requires the Secretary of HHS to provide for specified expenditures from the Physician Assistance and Quality Initiative Fund for payment for physicians' services.

Directs the Secretary of the Treasury to transfer specified funds from general revenues to Social Security trust funds to ensure that assets of such trust funds are not reduced as a result of enactment of this Act.