The Minnesota Department of Commerce has fined Medica $300,000 and imposed a two-year monitoring period for what it says are violations of mental health parity laws.
Under the state's order, Medica must make "systematic improvements to its processes for mental health coverage" over the next two years, according to a July 12 news release.
The state alleges Medica violated mental health parity laws by paying providers more for medical or surgical procedures than for mental health or substance abuse disorder treatments. In addition, Medica was allegedly more strict when reviewing mental health claims than in reviewing medical or surgical claims, and its explanation of benefits statements were inadequate.
"We are committed to ensuring those who need mental health care have access to the providers and services that can best support their needs," a Medica spokesperson told Becker's. "We support the state's goal of mental health parity and are committed to working to ensure we're collectively supporting Minnesotans."
Medica is a Minnetonka, Minn.-based payer that provides health coverage to 1.5 million members across 12 states.