Source: Colorado House Democrats
The House Health & Human Services Committee today passed legislation sponsored by Representatives Kyle Brown and Lindsay Gilchrist to save Coloradans money on health care. The bill would reduce health care costs for families by standardizing insurance coverage determinations to ensure that mental health care is based on clinical evidence, not profit margins. HB25-1002 passed by a vote of 13-0.
“Coloradans, especially our youth, struggle to access mental health care, and it’s crucial that we increase access to evidence-based mental health care so people can receive the care and treatment they need,” said Rep. Kyle Brown, D-Louisville. “Colorado Democrats have worked hard to improve access to mental health care that Coloradans can afford. This bill will make sure Colorado families get the health care they pay for.”
“Inconsistent mental health care coverage leads to delays, denials and treatments being cut short – this bill aims to bridge the gap so Coloradans can receive the care they need when they need it,” said Rep. Lindsay Gilchrist, D-Denver. “Coloradans are nine times as likely to be forced to seek care from an out-of-network provider for mental health care than for primary care – which drives up costs for Coloradans and undermines the importance of mental health care. Our bill standardizes insurance coverage surrounding mental health care, saves Coloradans money and will improve the overall quality of life of those impacted.”
HB25-1002 would make sure that insurance companies use transparent, evidence-based criteria when deciding whether mental health care should be covered under an insurance plan. This bill would also codify the federal Mental Health Parity and Addiction Equity Act into state law, requiring mental health services to see the same amount of coverage as physical health services. The goal of HB25-1002 is to ensure that insurance providers are covering mental health care and to limit gaps in insurance coverage for Coloradans.
The bill also clarifies state law around mental health parity and requires the use of clinical standards from select national organizations to ensure parity.
The Colorado Association of Health Plans (CAHP) has taken an amend position on the bill, supporting mental health parity while raising concerns about its implementation.
“We fully support mental health parity and the goal of improving access to care,” said Kevin McFatridge, Executive Director of the Colorado Association of Health Plans. “However, HB25-1002’s exclusive reliance on one set of clinical criteria—LOCUS—raises concerns about limiting flexibility in patient care and potentially keeping individuals in higher levels of care longer than necessary. Mental health treatment should be tailored to patient progress and evidence-based standards that encompass a broad range of conditions, not just a single tool designed for placement decisions.”
McFatridge also pushed back on the claim that this bill would lower costs, noting that it could have the opposite effect. “By increasing utilization without proper care management, HB25-1002 could actually drive up overall health care costs for Coloradans, not lower them. We’ve seen in other states, particularly in California, how broad mandates like these can lead to higher out-of-network usage and longer lengths of stay, which ultimately result in increased premiums and out-of-pocket costs.”
McFatridge pointed to challenges faced in California following the passage of SB 855, a similar law that led to coverage disputes, increased out-of-network reliance, and higher health care costs. “California’s experience shows us the risks of implementing rigid requirements without considering their impact on patients and the broader health care system,” he added. “It’s critical that we get this right to avoid the same unintended consequences.”
CAHP has urged lawmakers to consider amendments that would ensure access to high-quality care while maintaining appropriate clinical flexibility and preventing unnecessary cost escalations. Discussions around potential revisions to the bill are ongoing.
HB25-1002 now moves forward for further consideration in the legislative process.