Kaiser Settles Mental Health Parity Probes With Labor Department

Kaiser Foundation Health Plan Inc. agreed to refund its members more than $28.3 million in out-of-network expenses as part of a settlement with the US Department of Labor over its mental health coverage in California.

The Employee Benefits Security Administration alleged Kaiser failed to maintain adequate provider access under the Mental Health Parity and Addiction Equity Act, and used patient questionnaires to improperly deny coverage. The insurer agreed to improve its policies, reduce appointment wait times, and monitor network adequacy, the agency announced Tuesday.

Kaiser will also pay a $2.8 million penalty and establish a process for patients to claim ...