OIG Finds New York Failed to Enforce Mental Health Parity in Medicaid MCO Prior Authorization

The HHS Office of Inspector General determined that New York did not ensure selected Medicaid managed care organizations complied with mental health and substance use disorder parity requirements for prior authorization processes. The findings indicate state oversight gaps in enforcing the Mental Health Parity and Addiction Equity Act (MHPAEA) as it applies to Medicaid managed care. OIG identified instances where MCOs imposed more restrictive prior authorization requirements on behavioral health services compared to medical/surgical benefits. The report will likely prompt corrective action plans from New York and increased scrutiny of parity compliance in other states' Medicaid managed care programs.

Behavioral Health · Managed Care