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

Washington state imposed a $550,000 fine on Regence Blue Shield for inadequate documentation of mental health coverage parity. The state found significant disparities in in-network reimbursement rates between mental health and medical care, violating both state and federal laws. Insurance Commissioner Patty Kuderer condemned Regence for willfully misinterpreting inquiries and neglecting responsibilities to its members. Although Regence asserted it complied with behavioral health access requirements, it failed to provide necessary documentation to support this claim. The fine will contribute to Washington's general fund, the primary source of funding for state operations.

This penalty follows a similar $550,000 fine against Premera Blue Cross for parity violations earlier this year. Additionally, Washington legislators passed a bipartisan law to enhance mental health care coverage, effective in 2027. The insurance commissioner’s office continues to scrutinize mental health parity among insurers, with federal grants aiding the investigation.