HARTFORD – Today, Senate President Pro Tempore Martin Looney (D-New Haven) applauded final passage in the House of Representatives of Senate Bill 10, An Act Concerning Health Insurance and Patient Protection. The bill strengthens Connecticut’s five-year-old mental health parity law by allowing the state Insurance Department to issue fines when insurers violate the law, and by expanding the list of health conditions that insurers must immediately cover with the most effective drugs, instead of relying on less-costly therapies first.
“For too long, health insurance companies have skirted their responsibility to cover mental health conditions in the same way as physical health care,” said Senator Looney. “Senate Bill 10 will finally give the state the enforcement tools it needs to hold insurers accountable. Connecticut residents have waited too long to get the timely, effective mental health treatment to which they are entitled. Strengthening mental health parity will not only make our laws more fair, but it will also save lives. I want to thank Senator Jorge Cabrera for his tireless efforts in getting this bill passed in both chambers and the countless advocates who have supported the Senate’s efforts in this area over the years.”
Connecticut ranks 9th nationally for mental health access, but significant gaps remain:
-21% of adults—nearly 600,000 residents—experienced a mental illness in the past year.
-18% of adults with frequent mental distress couldn’t afford to see a doctor.
-Over 24,000 CT youth with major depression received no treatment at all.
Connecticut has had a mental health parity law on the books since 2019, but insurers continue to violate it with little consequence. Some insurers continue to underpay behavioral health providers compared to medical providers, they delay or deny treatment through more strict prior authorization and utilization review standards, or they maintain inadequate provider networks, forcing patients into costly out-of-network care.
Existing penalties, like a $1,000 fine for group plans, are far too weak to deter large insurers from cutting corners. Without real enforcement tools, an estimated half a million Connecticut residents are being denied the care to which they are entitled under our laws.
S.B. 10 fills the gaps that have made previous parity laws ineffective by establishing meaningful financial penalties for parity violations: the bill introduces a modern, scalable penalty structure of $100 per product line per day, capped at $625,000 annually per insurer. The bill also gives the Insurance Department the ability to use outside experts for investigations.
S.B. 10 also includes several key consumer protection measures to help rein in rising health care costs and eliminate unfair billing practices. Starting in 2027, the Insurance Department will have the authority to reduce proposed rate increases by up to two percentage points for insurers that repeatedly exceed the state’s health care cost growth benchmark. The bill also prohibits insurers from placing arbitrary limits on reimbursement for general anesthesia, ensuring patients receive adequate coverage for necessary care. Furthermore, it reinstates penalties for hospitals and health systems that violate facility fee limits, reinforcing safeguards against surprise billing and unnecessary charges.
S.B. 10 also expands the ban on using so-called “step-therapy” – where an insurer tries various less-expensive options before committing to your doctor’s orders – for drugs treating multiple sclerosis or rheumatoid arthritis.
S.B. 10 now heads to Governor Lamont for his signature.
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