BILL NUMBER: S8426A
SPONSOR: BROUK
 
TITLE OF BILL:
An act to amend the insurance law, in relation to preventing discrimi-
nation by insurers based on an individual's mental health or substance
use disorder
 
PURPOSE:
To amend the insurance law in relation to preventing discrimination by
insurers based on an individual's mental health or substance use disor-
der
 
SUMMARY OF PROVISIONS:
Section 3216 of the insurance law is amended by adding a new subsection
(n) § 2. Section 3221 of the insurance law is amended by adding a new
subsection (v) § 3. Section 4303 of the insurance law is amended by
adding a new subsection (ww).
 
JUSTIFICATION:
New York State and federal law require health insurance plans to cover
mental health and substance use disorder treatment the same way they
cover physical health treatment. In 2008 the Mental Health Parity and
Addiction Equity Act was passed to prevent private insurance companies
from instituting unequal coverage for mental health and substance disor-
ders insurance plans. Nevertheless, insurance carriers circumvented the
2008 law by creating their own formulae for mental health and substance
abuse disorder coverage exploiting loopholes in the law and virtually
eliminating parity with physical health insurance coverage. Health
insurance plans are not meeting the legal mandate for patients. This
persistent problem must be addressed.
New York State and our nation is facing a mental health crisis and
insurance companies are failing patients in need despite the 2008 parity
act. Many obstacles prevent our state's citizens from accessing the
mental health care they need, and the demand for mental health services
in recent years has exacerbated longstanding network inadequacy due to
the lower rates insurance companies are willing to pay for this care.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8426: 3221 insurance law, 4303 insurance law, 3216 insurance law
S8426A: 3216 insurance law, 3221 insurance law, 4303 insurance law