Alliance Note: People with commercial insurance plans in New York are often denied desired services from community providers because their plans either reimburse for services at far too low a rate, or do not cover them at all. We have been heartened by Governor Hochul and the legislature’s recent commitment to improve insurance parity, demonstrated by a provision passed last session to make commercial insurance cover essential services such as crisis respite stays, mobile crisis intervention services, and school based mental health.
This year, the Alliance joins other prominent New York Mental Health and Substance Use care organizations in support of the Governor’s proposed new parity provision which would require commercial insurances to pay at least the Medicaid rate for services offered by agencies licensed by the state. Not only will this provision offer people with commercial insurance more options to get their desired services, but it will also inject more funding to agencies who are currently struggling to recruit and keep workers due to low reimbursement rates. With higher reimbursements these agencies will be able to hire more staff, leading to better access to services for all.
Join the Alliance in advocating for this needed parity reform, the deeply needed 3.2% COLA, and other issues by coming to Albany on March 5th for our 27th Annual Legislative Day! Click below to sign up for a bus to secure your spot today.
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See below to learn more about the proposed commercial insurance parity regulation.
Equity in Access to Mental Health and Addiction Care for all New Yorkers is Within Reach
By Leading New York Mental Health and Addiction Care Organizations | Empire Report | February 27, 2024
New Yorkers with private health insurance have poor access to community-based mental health and addiction services due to inadequate rates commercial health insurance plans pay the community providers. According to a recent provider survey, commercial insurers pay (on average) just 50% of the reimbursement rate the State requires insurers to pay for the same services for New Yorkers with Medicaid insurance plans. Due to very low rates, access to critical mental health and addiction is jeopardized and such underpayment contributes to financial challenges these providers face to remain viable.
The impact on individuals and families with commercial insurance is the lack of access to essential services in the midst of a raging overdose epidemic and increasing suicide rates among young people and people of color in particular.
Governor Hochul has included a game changing proposal in her executive budget that would require commercial insurers to pay at least the same rate as the state’s Medicaid Program for the same services. The proposal has the potential to vastly improve access to care for New York’s families, children and adults who have commercial health insurance but often find it impossible to locate a provider who can serve them. We urge the State Legislature to embrace this proposal to address the crises occurring all across the State by including it in this year’s final budget.
New York State Council for Community Behavioral Healthcare
Families Together in New York State
Legal Action Center
Citizens’ Committee for Children
National Alliance on Mental Illness – NYS
Alliance for Rights and Recovery (formerly NYAPRS)
New York State Coalition for Children’s Behavioral Health
Federation of Mental Health Services
Mental Health Association in NYS
InUnity Alliance
Association for Community Living
NYS Care Management Coalition