Yesterday, Governor Jared Polis signed bipartisan legislation to save Coloradans money on health care. The new law will reduce health care costs for families by standardizing insurance coverage determinations to ensure that mental health care is based on clinical evidence, not profit margins.
“Health care coverage decisions should be made using the best evidence based recommendations of health care professionals, not on profit margins,” said Rep. Kyle Brown, D-Louisville. “Right now, too many Coloradans struggle to receive the care they need while insurance companies continue to deny coverage for behavioral health care. This new law helps standardize insurance coverage decisions so Coloradans can actually access the behavioral health services they pay for.”
“Access to mental health care and substance abuse treatment is crucial to the health and well-being of Colorado families,” said Sen. Judy Amabile, D-Boulder. “Far too often, insurance companies deny medically necessary mental health claims with little to no justification, and Coloradans who are already struggling end up with huge costs or no care at all. This legislation will help Coloradans get the care they need at a price they can afford.”
“Health insurance companies should cover services for mental health care at the same level they do for all other care, but far too often they deny claims when the care is necessary,” said Rep. Lindsay Gilchrist, D-Denver. “When insurance doesn’t cover claims, that drives up costs for families, and it makes it harder for Coloradans, especially young people, to receive critical care, as too many still don’t receive care at all. Colorado has made major strides in recent years to invest in behavioral health care, and this law carries on this work by ensuring providers can’t deny insurance coverage for medically necessary health care. We’re saving Coloradans money on health care and improving access to the care people need.”
HB25-1002, also sponsored by Senator Bryon Pelton, R-Sterling, will ensure that insurance companies use transparent, evidence-based criteria and programming when deciding whether mental health care should be covered under an insurance plan. This law also codifies the federal Mental Health Parity and Addiction Equity Act into state law, requiring insurance companies to provide the same level of coverage for mental health services as they do for physical health services. The goal of HB24-1002 is to ensure that insurance providers are covering mental health care and to limit gaps in insurance coverage for Coloradans.
The law also clarifies state law around mental health parity and requires the use of clinical standards from select national organizations to ensure parity.