Exploring New Laws to Combat Rising Addiction & Mental Health Crisis
TL/DR –
Maryland currently has multiple opportunities to improve insurance coverage and care accessibility for substance use and mental health, with over 2,500 Marylanders lost to overdose in 2023 alone, 922,000 individuals aged 12 and older documented as having a substance use disorder, and another 1,089,000 struggling with mental health issues. Despite state and federal parity laws requiring health plans to cover mental health equally to other medical care, no carrier in the state has complied, leading to fines of nearly $1 million for the largest carriers. It is recommended that the state’s Parity Act Compliance Reporting law be strengthened, the standards in the state’s reporting law align with the federal law, and that insufficient reporting be treated as a violation with fines placed in a compliance fund.
Maryland’s Struggle to Improve Mental Health and Substance Use Disorder Coverage
The 2024 legislative session in Maryland is a pivotal time for enhancing insurance coverage for mental health and substance use care across the state. The urgency is palpable, with over 2,500 Marylanders losing their lives to overdose in 2023, and approximately 2 million individuals grappling with substance use disorders and mental illness.
Understanding the Importance of Parity Laws
Under state and federal parity laws, Maryland citizens are entitled to non-discriminatory health insurance coverage for substance use and mental health care. These laws mandate health plans to cover mental health and substance use disorder services on par with other medical benefits. However, a report from the Maryland Insurance Administration divulged that no insurance carrier in the state has complied, leading to nearly $1 million in fines.
The Dangers of Non-Compliance
Without adequate reporting, the state cannot guarantee insurers are legal compliant, potentially leading to denied substance use and mental health care coverage. This creates undue risk for Maryland residents, particularly the youth, who have an increased need for mental health care. A National Emergency in Child and Adolescent Mental Health was declared in 2021, emphasizing the urgent need for stronger parity law enforcement.
Strengthening the Parity Act Compliance Reporting Law
To enforce accountability among health insurers and ensure Maryland residents can afford needed treatment, reform is needed. Advocates are pushing for legislation (House Bill 1074/Senate Bill 684) to authorize and strengthen the oversight of the Maryland Insurance Administration.
Recommendations for Change
Improved access to substance use and mental health care can be achieved through enforcing annual compliance verification, aligning state reporting law standards with federal law, and treating insufficient reporting as a parity violation. We further suggest adopting a penalty provision for insurers who fail to submit a compliance report, with the potential for a Parity Act Compliance Fund to support further enforcement actions, community education and consumer assistance.
The Path Forward
The insurance landscape may be complex, but securing affordable, timely, life-saving substance use and mental health treatment need not be. Maryland has the immediate chance to advocate crucial legislative changes to help residents access necessary care with ease.
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