Kaiser mental health care lacking, state says; HMO hit with $4 million fine

Imposing the second-largest fine in its history, the California Department of Managed Health Care on Tuesday slapped Kaiser health plans with a $4 million penalty for failing to provide mental health treatment in a timely manner.

The department also issued a cease and desist order to Kaiser, forbidding the health plan from continuing practices in violation of state law, which ensures equal care for mental and physical health.

An investigation that started in 2012 found that Kaiser's written description of its mental health services was so complicated and misleading that it "could dissuade an enrollee from pursuing medically necessary care."

Kaiser Permanente officials responded Tuesday by saying improvements are under way, and they plan to challenge the fine as too stiff.

Only one other fine in the history of the department exceeded Kaiser's.

That was in 2008 when Anthem Blue Cross was hit with a $10 million penalty for wrongfully rescinding consumers' health insurance coverage.

"The amount of the proposed penalty is unwarranted and excessive, and is unnecessary to ensure our corrective actions," said John Nelson, vice president for Kaiser Permanente. "We will review this with the DMHC."

Three months ago, the department released a detailed report saying Kaiser needed to see mental health patients more quickly and improve its public disclosures or face penalties.

It provided Kaiser with a laundry list of deficiencies to correct, including these examples:

A FAQ sheet for Kaiser in Northern California says: "We offer brief, problem solution-focused individual counseling. Research shows many people improve in a single visit. We do not offer long-term individual psychotherapy at Kaiser."

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Kaiser mental health care lacking, state says; HMO hit with $4 million fine

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