(FRANKFORT, Ky.) — Kentucky legislators are calling for enhanced enforcement of mental health insurance parity laws, citing concerns that current regulations lack adequate oversight and implementation.
Representatives Vanessa Grossl, R-Georgetown, and Lisa Willner, D-Louisville, presented bipartisan legislation Tuesday to the Interim Joint Committee on Banking and Insurance that would strengthen enforcement mechanisms for mental health parity requirements.
The proposed measure comes four years after Kentucky required insurers to treat mental health conditions equally with physical health issues. However, lawmakers say compliance has been inconsistent and oversight inadequate.
“We’re here today to discuss fidelity issues with that law to ensure that insurers are following the law with fidelity and that proper enforcement mechanisms are in place for those who do not,” Grossl told committee members.
Enforcement Concerns
Grossl expressed frustration with the Kentucky Department of Insurance’s implementation of existing parity laws. She noted that the department has failed to provide required annual reports on mental health parity compliance for the past two years.
“Reports from the department have not addressed mental health parity nor did last month’s department update testimony to this committee,” she said.
The draft legislation would transfer oversight and enforcement authority to the Kentucky General Assembly and the Attorney General’s Office. It also proposes establishing an advisory committee of mental health experts to support consumers and providers.
Access Gaps Persist
Willner, a licensed psychologist, emphasized that despite policy progress at state and federal levels, significant barriers remain for patients seeking behavioral health services.
“Access to in-network behavioral health services remains significantly less than access to in-network medical and surgical treatments,” she said.
The 2008 federal Mental Health Parity and Addiction Equity Act mandates that health plans cannot impose stricter financial requirements or treatment limitations on behavioral health services compared to medical and surgical benefits. Yet providers in Kentucky continue facing hurdles that undermine that goal.
Nicole Sartini, president of Bridge Counseling and Wellness in Louisville, described complications with insurance billing that result in “claw backs” where insurers retroactively deny payment for services already rendered.
Mixed Legislative Response
The proposal received varied reactions from committee members. Representative Adrielle Camuel, D-Lexington, called mental health parity “a complicated issue” and questioned whether the current draft adequately expands access to care.
Representative Jim Gooch Jr., R-Providence, raised concerns about overtreatment in the mental health field, particularly regarding childhood diagnoses that he said force educators to accommodate behavioral issues as disabilities.
Senator Julie Raque Adams, R-Louisville, asked about pre-authorization requirements that create additional administrative burdens for providers.
The legislation carries an estimated $300,000 cost, primarily to hire two paralegals in the Attorney General’s Office to handle enforcement duties, according to Grossl.
Stigma Remains Barrier
Sheila Schuster, chair of the Kentucky Mental Health Coalition, urged lawmakers to act, warning that Kentucky’s mental health and addiction challenges will persist without proper insurance enforcement.
“Very few people are willing to admit that they, or someone in their family, has a mental health or addictive disorder that’s going to need insurance. That’s what stigma does, and it’s still alive and well,” Schuster said.
The legislation cannot be acted upon until the 2026 Regular Session convenes in January. The measure remains in draft form and subject to revisions before formal introduction.
