(FOX 9) - The Minnesota Department of Commerce has announced a consent order with Medica Insurance Company that requires the company to make systematic improvements to its processes for mental health coverage.
According to the announcement, the order sets a two-year window for the department to monitor the company’s process changes and imposes a $300,000 fine for any further violations.
The order alleges Medica violated mental health parity laws, which are meant to ensure coverage for mental health care is comparable to coverage for medical or surgical care. In May, Commerce entered a similar order against HealthPartners, according to the announcement.
"Access to mental health care has never been more important. We are committed to removing barriers Minnesotans face when accessing mental health and substance abuse care," said Commissioner Grace Arnold in a statement.
State and federal parity laws prohibit health insurers from making it more difficult to get mental and behavioral health care compared to treatment for other health conditions.
The Medica consent order alleges the company violated parity laws by paying providers more for medical or surgical procedures than for mental health or substance abuse disorder treatment, according to the announcement.
According to the consent order allegations, Medica also was more stringent in reviewing mental health claims than in reviewing medical or surgical claims.
"The Department of Commerce regularly examines the practices of health insurance companies, including compliance with parity laws, and we take seriously any allegations of violations," said Commerce Assistant Commissioner for Enforcement Jacqueline Olson in a statement. "Today’s consent order benefits Minnesotans because it compels a large insurer to make major changes. Those changes will expand access to mental health care in our state. We will not permit insurers to jeopardize access to treatment for Minnesotans who need it."