California Providers Can’t Keep Up With Mental Health Parity Law

California health insurers are having trouble complying with a new state law intended to protect people from paying high out-of-pocket expenses for psychological or addiction care.

The law (S.B. 855) requires every health plan that provides hospital, medical, or surgical coverage to also cover mental health and substance-use disorders listed in the Diagnostic and Statistical Manual of Mental Disorders, a handbook used by health-care professionals.

Since the law went into effect in January 2021, advocates say many health plans skirt the mandate to provide coverage for mental health care under the same terms and conditions as physical health ...