See correction below.
MVP Health Care is among the first insurance carriers in New York to be fined for violating Timothy’s Law.
Department of Financial Services officials said on Tuesday that the department had levied fines totaling $2.7 million on carriers for violating provisions in the law that call for insurance companies to tell employers that they can add mental health coverage to their group plans. The provision applies to employers of 50 or fewer workers.
Named for a child who committed suicide after his family was denied mental health coverage, Timothy’s Law took effect in 2007. No insurers have been hit with fines for violating it until now. The violations in this round of citations took place in 2009 and 2010.
MVP’s $210,000 penalty fell in the middle of the pack. United Health Care’s Oxford Health Plans drew the biggest fine at $1.3 million. Empire HealthChoice drew the next largest at $440,440. Other companies fined were: Health Net, $260,680; HIP, $187,550; Independent Health $112,350 and Health Now, $101,640.
(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.
Correction
The headline in a previous version of this story misstated MVP Health Care's $210,000 fine.
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