California to probe mental health parity law compliance

The California Legislature is holding a special oversight hearing of the Senate Select Committee on Mental Health and Addiction Oct. 18 to determine health plans' willingness to cover an expanded range of mental conditions, California Local reported Oct. 17.

The hearing concerns health plans' compliance with the state's mental health parity law, which was passed in 2020. The state has faced criticism for its lack of enforcement of the law.

The hearing follows the $200 million settlement between Kaiser Permanente and the state for violating California's behavioral health access laws, the largest the state has ever reached with a managed care plan. 

Kaiser Permanente will pay $50 million in fines to the California Department of Managed Health Care and $150 million to the state over five years, which will be used to improve California's behavioral health system. 

In addition, a $6.8 billion bond initiative to fund new behavioral health treatment and housing spaces in the state will officially be on the March 2024 ballot after Gov. Gavin Newsom signed two mental health bills Oct. 12.

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