New York Fines Insurers For Not Notifying Businesses Of Mental Health Coverage.

The AP (5/9) reports, “New York regulators have fined 15 insurers $2.7 million for failing to notify small businesses they were eligible to buy special coverage for mental illnesses and children with serious emotional disturbances. Superintendent of Financial Services Benjamin Lawsky says they are the first fines under Timothy’s Law,” which “requires insurers give small employers the option of purchasing the mental health benefits when they buy or renew basic health insurance plans.”

The Buffalo (NY) News (5/10, Epstein) reports, “State insurance regulators have fined 15 health insurers — including two in Western New York — a total of $2.7 million for failing to comply with the state’s Timothy’s Law requirement that they tell small businesses about mental health coverage options.” These are “the first-ever such penalties against insurers for violating the five-year-old mental health parity law, which became effective in 2007.” The companies “were cited by the Department of Financial Services because they didn’t inform clients that they could buy special insurance coverage for mental illnesses and children with serious emotional disturbances,” which is “a requirement of Timothy’s Law.”

Related Links:

— “NY fines 15 insurers over mental health notices,”AP, The Wall Street Journal, May 8, 2012.

Posted in In The News.