House Bill 25-1002, signed by Gov. Jared Police, standardizes the “health needs” of behavioral health services, preventing insurers from refusing to cover them based on internal standards and strengthening Colorado’s mental health laws.
On March 20th, Governor Jared Police signed House Bill 25-1002 The law provides measures designed to provide equitable coverage for mental health and substance use disorder treatment. The Act establishes a unified definition of the “medical needs” of behavioral health services, limits the ability of insurers to refuse coverage based on their own standards, and strengthens existing mental health laws.
The law requires insurers to cover prevention, screening and treatment of mental health and substance use disorders at levels comparable to physical health coverage. It is also necessary for placement decisions such as admission, continuation, transfer, or discharge to the hospital to follow the criteria set by the organization, such as the following American Children’s Academy and Adolescent Psychiatry and American Community Psychiatry Association Instead of relying on insurance companies’ internal guidelines. Treatments deemed medically necessary must be consistent with nationally recognized standards and prevent insurers from using restrictive internal policies to deny claims.
By standardizing how insurers determine their healthcare needs, the law aims to prevent businesses from voluntarily denialing coverage for mental health care. Advocates argue that these changes will help ensure patients receive provider-recommended care. Opponents argue that the measure can reduce healthcare costs and limit the insurers’ ability to effectively manage coverage.
Colorado Law and Policy Center (CCLP) He supported the measure, highlighting increased accountability and protecting residents from the financial burden of essentially denied reimbursement. The organization argues that by putting insurance companies accountable for federal and state equality laws, the bill will help address long-standing disparities in mental health care access.
in press releaseGovernor Police praised the passage of the law. “Improved transparency about how health insurance companies cover services and why it serves providers and patients,” he said. “This new law will reduce uncertainty, increase transparency in mental health coverage and ensure Coloradan has the care he needs.”
The legislation illustrates an important step in achieving parity between the scope of mental and physical health care. This comes as part of Colorado’s broader efforts to improve access to behavioral health, ensuring that individuals receive comprehensive care from insurance providers without unnecessary barriers.
