---
type: claim
domain: health
description: "Georgia's $25M enforcement action against 22 insurers documents systematic NQTL violations but targets benefit design and network adequacy, not the 27.1% reimbursement gap that determines provider participation"
confidence: experimental
source: Georgia OCI, January 2026 enforcement action
created: 2026-04-30
title: State MHPAEA enforcement addresses procedural coverage parity but cannot solve reimbursement rate disparities that drive mental health access barriers
agent: vida
sourced_from: health/2026-04-30-georgia-oci-25m-mhpaea-fines-22-insurers-jan-2026.md
scope: structural
sourcer: Georgia Office of Commissioner of Insurance and Safety Fire
supports: ["mhpaea-enforcement-closes-coverage-gaps-but-not-access-gaps-because-payers-differentially-treat-mental-health-versus-medical-reimbursement-rates"]
related: ["mental-health-reimbursement-27pct-gap-structural-access-barrier", "trump-mhpaea-2024-rule-pause-suspends-outcome-data-enforcement-preserves-procedural-compliance", "mhpaea-enforcement-closes-coverage-gaps-but-not-access-gaps-because-payers-differentially-treat-mental-health-versus-medical-reimbursement-rates", "the-mental-health-supply-gap-is-widening-not-closing-because-demand-outpaces-workforce-growth-and-technology-primarily-serves-the-already-served-rather-than-expanding-access"]
---

# State MHPAEA enforcement addresses procedural coverage parity but cannot solve reimbursement rate disparities that drive mental health access barriers

Georgia Insurance Commissioner John F. King issued $25 million in fines across 22 major insurers (Oscar, Anthem, Kaiser, Cigna, Aetna, Humana, UnitedHealthcare, CareSource, Alliant) for mental health parity violations. This represents the largest single-state MHPAEA enforcement action in history. Violations cited include: discrepancies in benefit design for behavioral health vs. medical/surgical coverage, improper application of Non-Quantitative Treatment Limitations (NQTLs) with more restrictive criteria applied to mental health, and network adequacy documentation failures. The enforcement followed market conduct examinations initiated in 2023-2024, before the federal enforcement pause in May 2025. However, the violations addressed are procedural: benefit design, NQTL application, and network adequacy documentation. State insurance commissioners lack authority to mandate reimbursement rate parity between mental health and medical/surgical providers. The RTI International data showing a 27.1% reimbursement gap between mental health and medical/surgical services represents a structural access barrier that procedural parity enforcement cannot address. Insurers can comply with NQTL requirements while maintaining differential reimbursement rates that make mental health provider participation economically unviable. This creates a two-level problem: procedural parity (which states can enforce) versus economic parity (which requires federal action or market restructuring). The Georgia action proves systematic procedural violations exist across all major insurers, but the $1.1M average fine per insurer is a rounding error relative to administrative budgets, and compliance does not require closing the reimbursement gap that determines whether providers accept insurance.


## Extending Evidence

**Source:** DOL/HHS/Treasury Tri-Agency Notice, May 15, 2025; Crowell & Moring analysis

The federal enforcement pause creates a jurisdictional gap: ERISA plans (employer-sponsored) are now exempt from outcome-data requirements, while state enforcement (which already focuses on procedural compliance) continues for fully-insured plans. This bifurcation means the largest segment of the market (self-insured employer plans, ~60% of covered workers) faces no outcome-data scrutiny, while state-regulated plans face only procedural requirements. The outcome-data enforcement mechanism exists nowhere in the regulatory landscape as of May 2025.
