SENS. LOONEY, DUFF, CABRERA & LESSER WELCOME NEW INSURANCE REPORT ON PENALTIES FOR CT COMPANIES THAT DENY, DELAY MENTAL HEALTH CARE FOR POLICYHOLDERS

HARTFORD – Less than 10 months after Democrats passed a new law requiring state insurance companies to provide mental health parity to their policyholders or face steep fines, the first report on their compliance is out – and all five of the major Connecticut health carriers have been fined.

And the Senate Democrats who helped make this eye-opening report a reality are dismayed that their concerns and suspicions have been justified.

The Insurance Department’s new report finds that all five Connecticut insurance carriers – Aetna, Anthem, Cigna, Connecticare and UnitedHealthcare – failed to adequately connect policyholders with mental health treatment in the same way they do for medical and surgical treatment.

The Insurance Department also determined that:

• Several insurance companies submitted reports that lacked details about case management, clinical auditing, and drug screening/testing;
• There were “material operational disparities” affecting policyholder access to mental health and substance use disorder networks across all five insurance companies;
• All five insurance companies maintained “non-comparative reimbursement rate methodologies” when compared to their medical and surgical reimbursement rates;
• All five carriers need to strengthen their evaluation of unequal outcome data and identify corrective actions.

In 2019, the General Assembly passed a bill requiring more mental health parity from insurance companies. Last year, in 2025, Democrats passed Senate Bill 10, which requires health carriers to annually file a mental health parity compliance certification with the state Insurance Department, which then makes public a carrier’s compliance – or lack of compliance with Connecticut’s mental health parity laws. The 2025 bill also allows the Insurance Department to fine insurance companies up to a maximum of $625,000 if they fail to file these annual mental health compliance certifications.

“It has long been a fact that insurance companies are delaying and denying care for people who are paying for, and who need, mental health treatment. The problem grew so alarming that last year we passed S.B.10, a state Senate priority bill, because insurance companies had acted in bad faith since the passage of the 2019 bill,” said Senate President Martin Looney (D-New Haven). “Now we have documentation in a damning report that proves insurance companies are still not fully compliant with state law, and that they are being fined for their recalcitrance. I hope next year’s report is just as illuminating, but with a more positive outcome for those policyholders who need mental health or substance abuse treatment.”

“Mental health and substance abuse disorders should be treated no differently than a broken arm or an inflamed appendix. We worked long and hard in Connecticut to create parity between mental health and medical/surgical treatments, but insurance companies were always dragging their feet on implementing these very necessary changes,” said Senate Majority Leader Bob Duff (D-Norwalk). “Thanks to the hard work of Senator Cabrera, Senator Lesser, and others, we’ve finally turned the corner and are shining a light on insurance company failures and holding them accountable financially and to the policyholders they serve. This is a long-overdue wake-up call for the industry.”

“In 2019 we had a good start. Senate Bill 10, passed last year, added monetary fines and ensured that we named names,” said state Senator Jorge Cabrera (D-Hamden), who as Senate Chair of the Insurance and Real Estate Committee oversaw passage of S.B. 10. “It was the right thing to do and, quite frankly, insurance companies should be ashamed of themselves for their actions. People are hurting. They need mental health care, and insurance companies are delaying and denying. Now we know who they are, and they are paying the price for their indifference.”

Mental health and substance abuse coverage is serious business. In 2019, I co-wrote Connecticut’s Mental Health Parity Law,” said state Senator Matt Lesser (D-Middletown). “Outrageously, insurance companies failed to follow the law. We amended the law last year to add fines and name names, and I am glad that Connecticut’s Insurance Department is enforcing the law. Connecticut residents and businesses pay a fortune for health insurance; insurance companies need to follow that law and provide the coverage that people are paying for.

FOR IMMEDIATE RELEASE

Contact: Kevin Coughlin | kevin.coughlin@cga.ct.gov | 203-710-0193