Nevada Insurers Fail Mental Health Parity Law

A recent state report indicates that at least 16 insurance carriers in Nevada may have violated federal mental health parity laws during the past year. These violations have created significant obstacles for residents seeking mental health and addiction treatment, exacerbating existing challenges in a state with historically poor mental health rankings.

Federal law, in place since 2008 and reinforced by the Affordable Care Act, mandates that insurance plans must cover mental health and substance use disorders comparably to medical care. The Nevada Division of Insurance's second annual report identifies specific carriers engaging in non-compliant practices.

State Senator Fabian Doñate described the findings as a "disturbing realization," emphasizing how insurance companies allegedly bury mental health patients in paperwork and deny preauthorization more often than for medical care. This creates a "second-class tier of health care."

Among the 16 flagged carriers are United Healthcare Insurance Co., Aetna Health Inc., SilverSummit Health Plan, Health Plan of Nevada Inc., and Sierra Health and Life Ins Co. Three of these, Health Plan of Nevada, Molina Healthcare of Nevada, and SilverSummit Health Plan, also provide Medicaid coverage in the state.

Responding to the report, the Nevada Association of Health Plans stated they are reviewing the analysis and welcome discussions with regulators to address concerns. Some carriers have initiated meetings with state officials to discuss the report's findings.

Katrina Green, a Nevada resident, shared her personal experience of years of frequent rejections and delays for mental health treatment, largely due to insurance issues. She expressed how timely access to care could have significantly eased her personal burdens.

The report was published on December 31, 2025, with carrier names becoming public on February 6, 2026, following inquiries, due to a new state law, AB207, enacted in 2025 that ended previous confidentiality protections.

Nevada's Insurance Commissioner Ned Gaines acknowledged that while insurers contribute to access difficulties, provider shortages and the state's behavioral health system also play a role. He stressed that the report validates consumers' experienced access challenges.

David Lloyd of Inseparable highlighted data showing Nevada patients in 2021 sought inpatient behavioral health services 20 times more often than inpatient physical health services. He warned that untreated mental health issues increase overall healthcare costs.

Enforcement of mental health parity laws is complex, involving non-quantitative topics like prior authorization and network adequacy. While violations have been found, state law requires further investigation through market conduct examinations, expected to extend into 2027, before penalties like fines of up to $50,000 can be imposed.

The Nevada Health Authority confirmed it has a similar report for Nevada Medicaid. Officials emphasize the interconnectedness of insurance markets and the need for private insurance networks to meet behavioral health needs for all populations to prevent a shift to taxpayer-funded Medicaid.