WA fines Regence Blue Shield 550K over shortfalls with mental health coverage

Washington state fined Regence Blue Shield $550,000 due to violations of mental health coverage parity laws. The insurer did not provide adequate documentation to prove that its behavioral health services were comparable to its medical offerings, which is required by both state and federal law. Insurance Commissioner Patty Kuderer emphasized the company's lack of accountability and criticized its staff for misinterpreting questions about their practices. In a statement, Regence claimed it has complied with state and federal requirements and is committed to improving its behavioral health services. This fine marks the second significant penalty imposed this year for mental health coverage discrepancies in Washington.

A recent bipartisan law, effective in 2027, aims to clarify that mental health and drug treatment are essential services that insurers must cover. Despite existing parity laws, studies indicate patients often face disparities in access to mental health care compared to physical health services. The ongoing scrutiny from the insurance commissioner’s office highlights the state's commitment to addressing these persistent issues.