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Parity debate: sponsors urge state codification of 2024 federal rules; insurers urge caution
Summary
Assemblymember Hart and regulators urged the committee to codify the 2024 federal mental‑health parity rules into California law so state regulators can enforce them even if federal enforcement changes; insurers and health‑plan trade groups warned the federal rules are in litigation and urged delay, leading to a contested committee discussion and an 8–2 committee vote to move the bill forward.
Assemblymember Hart presented AB 20 11 as a measure to protect mental‑health and substance‑use disorder parity by codifying the federal 2024 rules into California law so state regulators can continue enforcing parity standards even if federal enforcement weakens. "EB 20 11 enshrines protections in state law so state regulators can continue to enforce parity requirements as they currently are no matter what changes occur at the federal level," Hart said, adding he would accept committee amendments.
Supporters included Lauren Finke of the Kennedy Forum, who described the 2024 rules as providing enforceable standards and data tools for regulators, and Miguel Bastidas of the California Department of Insurance, who emphasized that insurers’ comparative analyses often lacked required information and that clear statutory guidance would help regulators determine compliance.
Opponents — including Olga Shilo of the California Association of Health Plans and representatives of life and health insurers — urged caution. Shilo said the 2024 federal rule has been paused for review and is the subject of ongoing litigation; she warned that codifying the current rule could lock the state into requirements that may change and could impose a burdensome compliance structure without improving access to care. Industry witnesses also flagged potential cost and implementation burdens and asked the Legislature to wait for federal rulemaking to settle.
Committee members pressed both sides on whether codifying the rule was precautionary or premature and noted concerns about cost and litigation; several members said the issue was complex and warranted further discussion. After debate and consideration of committee amendments intended to clarify implementation, the committee voted to move AB 20 11 as amended. The roll call recorded the committee decision as 8 ayes to 2 noes.
