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New Calif. Laws Slice Drug Costs, Force Insurers to Cover Substance Abuse Disorders - Los Angeles Sentinel


New Calif. Laws Slice Drug Costs, Force Insurers to Cover Substance Abuse Disorders
By Quinci LeGardye, California Black Media
Published February 4, 2021
(Courtesy photo)
Two new California laws that took effect Jan. 1 aim to make access to quality health care more equitable and affordable.
SB 855, written by Sen. Scott Wiener (D-San Francisco) and signed into law by Gov. Gavin Newsom in September, expanded the California Mental Health Parity Law, requiring California health plans to provide full coverage for medically necessary treatment of all mental health and substance-use disorders defined by the American Psychiatric Association.
Under that law, “medically necessary treatment” is defined as a covered service that is consistent with generally accepted standards set by professional associations. SB 855 also prohibits an insurer from limiting benefits for chronic conditions to only cover short-term or acute treatment. ....

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