This area’s second largest health insurer has agreed to pay a civil penalty after a settlement with the state over an issue involving mental health benefits.
MVP Health Care has agreed to pay a penalty of $300,000 after State Attorney General Eric Schneiderman said an investigation by his office uncovered widespread violations of mental health parity laws. That law, which was enacted in New York State in 2006, requires that insurance companies provide mental health coverage that is at least equal to coverage provided for other health conditions.
Schneiderman says that Schenectady-based MVP has also designated $1.5 million for reimbursement of past treatment claims that had previously not been covered. The Attorney General says that the settlement requires MVP to submit previously denied mental health and substance abuse treatment claims for independent review, and he says that could result in more than $6 million being returned to its members.
The Attorney General says that since at least 2011 MVP, through a subcontractor, issued 40 percent more denials of coverage in behavioral health cases than in medical cases.
MVP Health Care has agreed to overhaul its claims review process.
