NY settles with insurer over mental health claims

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ALBANY, N.Y. (AP) — New York’s attorney general says an insurer covering more than 500,000 people has agreed to reform its handling of behavioral health claims, cover residential treatment and charge its lower primary care co-payment for outpatient mental health and addiction treatment.

The attorney general’s Health Care Bureau says since 2011, an MVP Health Care subcontractor issued 40 percent more coverage denials for behavioral health cases than it die for medical cases.

Under the settlement, MVP members in the Hudson Valley, greater Albany area and central New York can resubmit denied claims for independent review, which authorities say could result in more than $6 million in payments.

New York’s mental health parity law requires coverage at least equal to that for other health conditions.

MVP says it’s established processes for resubmitting certain claims.

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