business
Health plans fined over failure to offer mental health coverage
NEWS IN BRIEF — Posted May 21, 2012
New York State for the first time has penalized insurers that do not offer small businesses the option to buy mental health coverage or special coverage for emotionally disturbed children, as required by a law that took effect in 2007.
The state’s Dept. of Financial Services fined UnitedHealth Group subsidiaries UnitedHealthcare and Oxford Heath Insurance $1.3 million; WellPoint subsidiary Empire BlueCross BlueShield, $480,440; Health Net, $260,680; MVP Health Plan, $215,630; Health Insurance Plan of Greater New York, $187,570; Independent Health, $112,350; and HealthNow New York, $101,640.
All of the companies said the violations were not the result of a deliberate effort to evade the requirements and agreed to take steps to ensure compliance.
The rule, known as Timothy’s Law, was named for a 12-year-old boy who committed suicide in 2001. His parents had been unable to get him the mental health treatment he needed, according to the department’s news release.
Under New York law, all employers must cover 30 days of inpatient and 20 outpatient visits for mental health treatment. Large employers must provide coverage of mental health services for children at a level comparable to other illnesses, and small businesses with 50 or fewer workers must be given the option to buy the coverage at an additional cost. These requirements exceed the federal mental health parity law that took effect in 2010.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2012/05/21/bibf0521.htm.
