Georgia to Fine Insurers $20 Million for Mental Health Parity Violations

ATLANTA, Ga.—Georgia Insurance and Safety Fire Commissioner John F. King announced that his office will fine health insurance companies more than $20 million for violating the state’s Mental Health Parity Act.

The law, which took effect in 2022, requires insurers to provide coverage for mental health and substance use disorders that is comparable to their physical health coverage.

“I was there when Georgia’s Mental Health Parity Act was signed into law in 2022,” said Commissioner King. “Three years later, our initial examinations show that insurers have turned a blind eye to the rules and continue to deprive Georgians of the essential behavioral health resources they deserve.”

The fines come after the Commissioner’s office conducted market conduct examinations on 22 insurers. These comprehensive audits were triggered by findings in the state’s first mental health parity data call report, published in August 2023.

The examinations uncovered more than 6,000 violations. Common issues included inconsistent application of benefit classifications and requiring prior authorization for services that did not need it.

Under Georgia law, the Commissioner can impose a penalty of up to $2,000 for each violation, which can increase to $5,000 if the insurer knew they were in violation.

“The time to get in compliance with the law was yesterday,” King stated. “Today, we are taking decisive action to hold those who think they can skirt the law accountable. I will not tolerate games, excuses, or stalling tactics from these companies, and we will come after those who try with every tool at our disposal.”

The Office of Insurance will continue to monitor compliance. Consumers who believe they have been the victim of a mental health parity violation can file a complaint on the office’s website or call toll-free at 1-800-656-2298.