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New York Carelon Settlements Over Mental Health Access and Substance Use Coverage

Carelon Behavioral Health, Inc.November 10, 2026New York Attorney General

Penalty Amount

$2,350,000

Consumers Affected

4,000,000

Summary

New York Attorney General Letitia James announced settlements with Carelon after investigations found inaccurate mental health provider directories and improper denials of substance use disorder treatment using unapproved criteria. Carelon must pay $2.35 million in penalties, fees, and costs, provide eligible members with restitution or repayment, and change its provider-directory and coverage-review practices.

Remedy

Carelon must pay $2.35 million in penalties, fees, and costs; provide up to $8 million in restitution for eligible out-of-network mental health expenses and repay eligible members for other improper out-of-pocket costs. It must correct provider listings, verify directory information, meet appointment-access requirements, use OASAS-approved criteria for substance use treatment reviews, and submit to independent monitoring and reporting.

Monetary PenaltyConsumer RefundsInjunctionCompliance ProgramAudit RequirementReporting Requirements

Contract Impact

Review health-plan, behavioral-health administrator, and provider-network vendor agreements for clear obligations to maintain accurate directories, verify provider availability and network status, meet appointment-access standards, and offer out-of-network coverage when timely in-network care is unavailable. Check claims-administration and utilization-review clauses to require the applicable OASAS-approved medical-necessity criteria, consideration of complete member records, compliant denial and appeal processes, and repayment of improperly denied claims. Add audit, monitoring, reporting, remediation, and reimbursement obligations, and ensure member-facing directory and coverage communications accurately describe access and benefits.

Contract Search Terms

provider directory accuracyprovider network adequacyprovider information verificationappointment access standardsout-of-network coverage exceptionsmedical necessity criteriaOASAS-approved criteriaclaims denial and appeal proceduresindependent audit and reporting

Laws Cited

New York law requiring insurers to use OASAS-approved medical necessity criteria for substance use disorder treatment

Violation Types

Entity Details

Entity

Carelon Behavioral Health, Inc.

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"Carelon Behavioral Health, Inc. (Carelon)"
Fine Amount
"Carelon will pay $2.35 million in penalties, fees, and costs"
Violation description
"Carelon's online provider directories contained many errors, including listings for providers who were unreachable, no longer practicing, not accepting new patients, or not actually in-network."
Violation description
"Carelon improperly denied members’ substance use disorder treatment requests using unapproved medical necessity criteria in at least 41 instances."
Laws Cited
"Since 2017, New York law has required insurers to use medical necessity criteria approved by the New York State Office of Addiction Services and Supports (OASAS) when reviewing requests for substance use disorder treatment."

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