Blue Cross of Minnesota agrees to legal settlement for better mental health coverage

Blue Cross and Blue Shield of Minnesota has reached a settlement with the state attorney general over concerns the Eagan-based health insurer failed to comply with laws insisting that health plans cover mental health services the same as they cover treatments for physical health problems.

The Minnesota Blues plan denied any wrongdoing, but agreed to a series of new oversight provisions. In addition, the insurer will operate under new mental and behavioral health care rules that call for prompt decisions on prior authorization requests as well as applications by health care providers to join the health insurer’s network.

Blue Cross will be required to pay a $300,000 civil penalty if a court finds the insurer has violated terms of the settlement, which was announced Friday. In addition, Blue Cross is contributing $600,000 to a center for rural behavioral health at Minnesota State University-Mankato.

“Mental and behavioral health care is health care, period,” Minnesota Attorney General Keith Ellison said in a statement. “We expect someone with a broken leg to be able to get the care they need, and the same should be true of Minnesotans struggling with conditions like depression or substance use disorder.”

Blue Cross said in a statement that it shares Ellison’s commitment to ensuring patients have timely access to “high quality and affordable mental health care.”

“Blue Cross has enhanced our practices related to addressing mental health benefits and access to care to ensure we are meeting the high expectations of members and other stakeholders,” the insurer said. “Today, our strategy is focused on transforming all mental health solutions in ways that can set new industry standards for equitable access to optimal care.”

The settlement is the latest in a series of agreements over the past 18 months between the state and Minnesota health insurers for improved coverage of mental health.

The earlier agreements were prompted by alleged violations of mental health parity laws, which have been adopted over the past two decades to improve patient access to mental health and behavioral health treatments.