Health insurance companies generally reimburse providers less for providing behavioral healthcare as opposed to physical healthcare. And insurers’ “prior authorization” mandates often result in insurance companies – rather than the treating clinician – making decisions about a patient’s care. The provider directories that insurance companies issue, listing which doctors are within a network and where patients can access behavioral healthcare, are often out of date and inaccurate, which makes it difficult for people to access needed care.
Those long-standing, documented facts have been known for years, but have remained unresolved. But last Thursday, Massachusetts Attorney General Maura Healey reached a settlement with insurance companies operating in Massachusetts over their alleged violations of the state’s health parity laws.
The “assurances of discontinuance” Healey filed in Superior Court means that insurers will change the way they determine reimbursement rates for outpatient behavioral health services at all provider levels, including psychiatrists, psychologists, and social workers. Healey said this will generally result in higher reimbursement for such services.
They also agreed to limit prior authorization for certain behavioral healthcare. Specifically, Fallon Community Health Plan through its administrator Beacon Health Strategies “will no longer require prior authorization for routine behavioral health office visits or for inpatient mental health admissions after treatment in an emergency department,” according to a media release from the AG’s office. Harvard Pilgrim Health Care and AllWays Health Partners, working through Optum, will no longer “overrule healthcare providers’ decisions on what constitutes appropriate care, including decisions about the appropriate type of treatment and frequency of visits.” Healey also went after Harvard Pilgrim and Blue Cross Blue Shield of Massachusetts for imposing prior authorization requirements on patients who sought substance use disorder treatment out of network or out of Massachusetts – in clear violation of state law.
Blue Cross Blue Shield, Harvard Pilgrim, AllWays, Fallon, Optum, Beacon Health Strategies, United Behavioral Health, and Tufts Health Plan all agreed to “robust provider directory audits” and timely corrections to them, and all agreed to pay a total of nearly $1 million to a fund that the AG’s office will use “to promote initiatives designed to prevent or treat substance use disorders, increase access to behavioral healthcare services, or otherwise assist Massachusetts behavioral healthcare patients.”
Response to AG Healey’s action was swift, bipartisan, and favorable across the healthcare continuum. Massachusetts Health and Human Services Secretary Marylou Sudders said, “The result of the Attorney General’s investigations will help ensure that parity and improve access for individuals seeking behavioral health treatment. Behavioral health is at the heart of Governor Baker’s healthcare bill, which proposes important shifts in our system that will enable us to address access, affordability and availability, and will ensure Massachusetts’ continued leadership in healthcare.”
Earlier this month, the Massachusetts Senate passed the Mental Health ABC act that would, in part, strengthen Massachusetts parity laws and give the Division of Insurance the authority to more strictly enforce parity.
MHA President and CEO Steve Walsh said, “Wholesale prior authorizations have rankled skilled providers in the commonwealth for many years, and the chronic underpayment of those who provide mental healthcare and substance use disorder care to our citizens has been a long-standing problem. In one important and powerful action, AG Healey has taken a meaningful step toward resolving these seemingly intractable problems and, in doing so, has improved the health of the commonwealth and the lives of our front-line caregivers.