California Law Aims to Boost Behavioral Health Pay Parity

California recently passed a law requiring health plans to follow a more expansive definition of behavioral health reimbursement parity starting in 2021. Experts say that plans will have to spend more on behavioral health care than they did before, as payers’ utilization management practices will have to follow a more generous standard for medical necessity.

The new law, which passed the California Assembly as S.B. 855 on Sept. 23, expands the requirements of existing behavioral health parity statutes to require that plans reimburse all “medically necessary” behavioral health treatment, including substance use disorder treatment. The law also includes a provision that requires plans to limit cost sharing to in-network levels for members who are only able to access out-of-network providers.

0 Comments
© 2023 MMIT
Peter Johnson

Peter Johnson

Peter has been a reporter for nearly a decade. Before joining AIS Health, Peter covered a wide variety of topics in his hometown of Seattle, where he continues to live. Peter’s work has appeared in publications including The Atlantic and The Stranger. Peter attended Colby College.

Related Posts

businessman-viewing-news-update-journalism-headline-on-a-laptop
January 27

News Briefs: ACA Marketplace Enrollment Tops 16.3M

READ MORE
capitol-hill
January 27

Even With Split Congress, Some Experts Predict Heightened Health Care Oversight

READ MORE
wall-street-logo
January 27

Elevance Sees Double-Digit Percentage EPS Growth for Fifth Consecutive Year

READ MORE

GAIN THERAPEUTIC AREA-SPECIFIC INTEL TO DRIVE ACCESS FOR YOUR BRAND

Sign up for publications to get unmatched business intelligence delivered to your inbox.

subscribe today