California to Enforce New Mental Health Parity Law

Insurance Commissioner Ricardo Lara issued a notice to all health insurance companies in California about their obligation to comply with changes to the California Mental Health Parity Act. The recent enactment of Senate Bill 855 means that health insurance companies must cover health care services that are medically necessary to diagnose, prevent, and treat all mental health conditions, as well as substance use disorders, equal to coverage provided for other medical conditions.

They cannot limit coverage for treatment in ways that conflict with prevailing standards of care.

The requirements will take effect on January 1, 2021. The notice advises insurers to submit their health insurance policies to the Department for a compliance review by December 31, 2020.