4072. Mental health and substance use disorder services
(a) No policy provision which is not subject to section 4065 or 4066 of this title shall make a policy, or any portion thereof, less favorable in any respect to the insured or the beneficiary than the provisions thereof which are subject to these sections.
(b) As used in this section:
(1) “Mental condition” means any condition or disorder involving psychiatric disabilities or substance use disorder that falls under any of the diagnostic categories listed in the mental disorders section of the International Classification of Diseases, as periodically revised.
(2) “Mental health provider” means any individual, corporation, facility, or institution certified or licensed by this State to provide mental health services, including a physician, nurse with recognized psychiatric specialties, hospital or other health care facility, psychologist, clinical social worker, mental health counselor, alcohol or drug abuse counselor, or an employee or agent of such provider acting in the course and scope of employment or an agency related to mental health services.
(3) “Rate, term, or condition” means any lifetime or annual payment limits, deductibles, co-payments, coinsurance, and any other cost-sharing requirements, out-of-pocket limits, visit limits, and any other financial component of health insurance coverage that affects the covered individual.
(c) A health insurance plan shall provide coverage for treatment of a mental condition and shall:
(1) not establish any rate, term, or condition that places a greater burden on a covered individual for access to treatment for a mental condition than for access to treatment for other health conditions, including no greater co-payment for primary mental health care or services than the co-payment applicable to care or services provided by a primary care provider under a covered individual’s health insurance plan and no greater co-payment for specialty mental health care or services than the co-payment applicable to care or services provided by a specialist provider under a covered individual’s health insurance plan;
(2) not exclude from its network or list of authorized providers any licensed mental health or substance use disorder treatment provider located within the geographic coverage area of the health insurance plan if the provider is willing to meet the terms and conditions for participation established by the health insurer;
(3) make any deductible or out-of-pocket limits required under a health insurance plan comprehensive for coverage of both mental and physical health conditions; and
(4) if the health insurance plan provides prescription drug coverage, ensure that at least one medication in each therapeutic class approved by the U.S. Food and Drug Administration for the treatment of substance use disorder, including for opioid use disorder, methadone, buprenorphine, and naltrexone, is available on the lowest cost-sharing tier of the plan’s prescription drug formulary.
(d)(1)(A) A health insurance plan that does not otherwise provide for management of care under the plan, or that does not provide for the same degree of management of care for all health conditions, may provide coverage for treatment of mental conditions through a managed care organization, provided that the managed care organization is in compliance with rules adopted by the Commissioner that ensure that the system for delivery of treatment for mental conditions does not diminish or negate the purpose of this section. In reviewing policy rates and forms pursuant to section 4026 of this title, the Commissioner or the Green Mountain Care Board established in 18 V.S.A. chapter 220, as appropriate, shall consider the compliance of the policy with the provisions of this section.
(B) The rules adopted by the Commissioner shall ensure that:
(i) timely and appropriate access to care is available;
(ii) the quantity, location, and specialty distribution of health care providers is adequate;
(iii) administrative or clinical protocols do not serve to reduce access to medically necessary treatment for any covered individual;
(iv) utilization review and other administrative and clinical protocols do not deter timely and appropriate care, including emergency hospital admissions;
(v) in the case of a managed care organization that contracts with a health insurer to administer the health insurer’s mental health benefits, the portion of a health insurer’s premium rate attributable to the coverage of mental health benefits is reviewed under section 4026, 4513, 4584, or 5104 of this title to determine whether it is excessive, inadequate, unfairly discriminatory, unjust, unfair, inequitable, misleading, or contrary to the laws of this State;
(vi) the health insurance plan is consistent with the Blueprint for Health with respect to mental conditions;
(vii) a quality improvement project is completed annually as a joint project between the health insurance plan and its mental health managed care organization to implement policies and incentives to increase collaboration among providers that will facilitate clinical integration of services for medical and mental conditions, including:
(I) evidence of how data collected from the quality improvement project are being used to inform the practices, policies, and future direction of care management programs for mental conditions; and
(II) demonstration of how the quality improvement project is supporting the incorporation of best practices and evidence-based guidelines into the utilization review of mental conditions;
(viii) an up-to-date list of active mental health providers in the plan’s network is available on the health insurer’s and managed care organization’s websites and provided to consumers upon request; and
(ix) the health insurers and managed care organizations make accessible to consumers the toll-free telephone number for the Department of Financial Regulation’s consumer protection help line.
(C) Prior to the adoption of rules pursuant to this subdivision (d)(1), the Commissioner shall consult with the Commissioner of Mental Health concerning:
(i) developing incentives and other measures addressing the availability of providers of care and treatment for mental conditions, especially in medically underserved areas;
(ii) incorporating nationally recognized best practices and evidence-based guidelines into the utilization review of mental conditions; and
(iii) establishing benefit design, infrastructure support, and payment methodology standards for evaluating the health insurance plan’s consistency with the Blueprint for Health with respect to the care and treatment of mental conditions.
(2) A managed care organization providing or administering coverage for treatment of mental conditions on behalf of a health insurance plan shall comply with this section, sections 4064 and 4724 of this title, and 18 V.S.A. § 9414; with rules adopted pursuant to those provisions of law; and with all other obligations, under Title 18 and under this title, of the health insurance plan and the health insurer on behalf of which the managed care organization is providing or administering coverage. A violation of any provision of this section shall constitute an unfair act or practice in the business of insurance in violation of section 4723 of this title.
(3) A health insurer that contracts with a managed care organization to provide or administer coverage for treatment of mental conditions is fully responsible for the acts and omissions of the managed care organization, including any violations of this section or a rule adopted pursuant to this section.
(4) In addition to any other remedy or sanction provided for by law, if the Commissioner, after notice and an opportunity to be heard, finds that a health insurance plan or managed care organization has violated this section or any rule adopted pursuant to this section, the Commissioner may:
(A) assess a penalty on the health insurer or managed care organization under section 4726 of this title;
(B) order the health insurer or managed care organization to cease and desist in further violations;
(C) order the health insurer or managed care organization to remediate the violation, including issuing an order to the health insurer to terminate its contract with the managed care organization; and
(D) revoke or suspend the license of a health insurer or managed care organization, or permit continued licensure subject to such conditions as the Commissioner deems necessary to carry out the purposes of this section.
(5) As used in this subsection, the term “managed care organization” includes any of the following entities that provide or administer the coverage of mental health benefits on behalf of a health insurance plan:
(A) a mental health review agent as defined in section 4064 of this title;
(B) a health insurer or its delegate;
(C) a managed care organization, as defined in 18 V.S.A. § 9402, or its delegate; and
(D) any other person or entity that meets the definition of a managed care organization under 18 V.S.A. § 9402 or under rules adopted by the Commissioner.
(e) To be eligible for coverage under this section, the service shall be rendered:
(1) For treatment of a mental condition, either:
(A) by a licensed or certified mental health professional; or
(B) in a mental health facility qualified pursuant to rules adopted by the Secretary of Human Services or in an institution, approved by the Secretary of Human Services, that provides a program for the treatment of a mental condition pursuant to a written plan.
(2) For treatment of substance use disorder, either:
(A) by a licensed alcohol and drug abuse counselor or other person approved by the Secretary of Human Services based on rules adopted by the Secretary that establish standards and criteria for determining eligibility under this subdivision (2); or
(B) in an institution, approved by the Secretary of Human Services, that provides a program for the treatment of substance use disorder pursuant to a written plan.
Recodified and amended 2025, No. 11, § 2, eff. September 1, 2025; amended 2025, No. 91 (Adj. Sess.), § 33, eff. Apr. 30, 2026.
