Acting New York State Department of Financial Services (DFS) Superintendent Adrienne A. Harris today secured $3.1 million for New Yorkers, following DFS’ review of New York insurers’ compliance with state and federal cost-sharing requirements for mental health and substance use disorder parity.

DFS reviewed the mental health and substance use disorder parity reports that insurers are required to submit every two years to ensure that health insurers provide the same level of mental health and substance abuse disorder benefits that they do for medical care. The review found that Aetna, Oscar, and Wellfleet sold policies that required consumers to pay a copayment or coinsurance for mental health and substance use disorder benefits that was not permitted under the law.

“Now more than ever, mental health and substance abuse issues are a top priority as we come to the end of the second year of the COVID-19 pandemic,” said Acting Superintendent Harris. “It is our responsibility at DFS to ensure that New Yorkers in particular receive comparable benefits to medical care for mental health and substance abuse treatments, which can help an individual achieve critical health outcomes.”

The three insurers have agreed to DFS’ findings and have signed consent orders. The violations, monetary penalties, and consumer restitution amounts are below:

• Aetna Life Insurance Company was fined $874,000 for violation of MHPAEA and New York Insurance Law, $376,000 for erroneous data reporting, and will return $439.20 to consumers;
• Oscar Insurance Corporation was fined $1,000,000 for violation of MHPAEA and New York Insurance Law and will return $465,800 to consumers; and
• Wellfleet New York Insurance Company was fined $425,000 for violation of MHPAEA and New York Insurance Law and will return $7,326.70 to consumers.

“I applaud the commitment that Acting Superintendent Harris and the Department of Financial Services have demonstrated on parity compliance,” said OASAS Commissioner Chinazo Cunningham. “We know that parity enforcement is essential for ensuring New Yorkers have access to substance use and mental health quality healthcare. Insurers who do not comply with the law must be held accountable. It is not only the law – it is a matter of life and death.”

"New York's Parity Laws are some of the strongest and most effective in the nation, and require that insurers apply the same standards for access to mental health and addiction treatment services as they do to medical and surgical care,"  said OMH Commissioner Dr. Ann Sullivan. “By partnering with OMH and OASAS to ensure the laws are followed, the Department of Financial Services is helping increase access to services and ensuring that vulnerable New Yorkers are able to get the treatment and services they are entitled to."

The overall DFS monetary penalty is $2,675,000, of which $2,299,000 will go to the Behavioral Health Parity Compliance Fund which provides funding for initiatives supporting parity implementation and enforcement on behalf of consumers, including the Behavioral Health Ombudsman Program. The remainder of the penalty will go to the General Fund. The total consumer restitution is $473,565.90.

Read the mental health and substance use disorder parity consent orders.