Kaiser Foundation Health Plan Reaches $30M DOL Settlement Over Mental Health Practices (KSHI)

The U.S. Department of Labor resolved multiple investigations into Kaiser Foundation Health Plan's (KSHI) mental health and substance use disorder practices with a $30 million settlement, including $28 million in compensation for out-of-network service costs and a $2.8 million penalty. The agreement addresses allegations of inadequate provider networks and improper use of questionnaire responses to deny care. The company stated it has enhanced its mental health delivery system and will reform policies to reduce wait times and improve care review, ensuring medically necessary treatment. The settlement does not reflect ongoing practices or current issues.