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Bill

S 9927

Requires the superintendent of financial services to audit certain reports to ensure such insurers are in full compliance with federal and state mental health and substance use disorder parity requirements

2025 Regular Session Introduced by Pat Fahy and 1 co-sponsor

DFS will audit insurers’ MH/SUD parity reports for full compliance and coordinate enforcement with the Attorney General for willful violations.

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Bill Summary · S 9927

Summary of Bill S.9927 (2025-2026) – New York

Purpose

To strengthen oversight of insurers by requiring the New York Department of Financial Services (DFS) superintendent to audit insurer-reported compliance with federal and state mental health and substance use disorder (MH/SUD) parity laws. The bill authorizes investigations into credible allegations of noncompliance and mandates enforcement cooperation with the Office of the Attorney General (OAG).

Key Provisions

  • Scope of reporting (existing requirement preserved and expanded):
    Beginning July 1, 2019, and every two years thereafter, insurers offering certain health-related products must submit to the DFS superintendent a report on compliance with MH/SUD parity laws for the prior two calendar years. Covered entities include:

    • Insurers providing managed care products
    • Individual comprehensive health insurance
    • Group or blanket comprehensive health insurance
    • Corporations organized under Article 43 of the Insurance Law (comprehensive health insurance)
    • Entities licensed under Article 44 of the Public Health Law (comprehensive health service plans)

  • Public disclosure and summary (enhanced transparency):
    The DFS must publish on its website:

    • The full parity compliance reports (or as allowed by law) on or before October 1 following each reporting period.
    • A public summary of the reports to aid understanding and comparison by stakeholders and the public. The summary should include:
    • Overall rankings for each insurer
    • Major findings
    • Any corrective actions required
    • Any fines or penalties assessed
    • Recommendations to improve parity compliance
    • The Department must provide copies of the report to the Governor, the Temporary President of the Senate, the Speaker of the Assembly, and members of the Legislature.

  • DFS audit authority (new and central to the bill):
    The superintendent must audit each insurer’s parity report to determine full compliance with MH/SUD parity requirements. The audit may include, but is not limited to:

    • Verification of the accuracy and completeness of the parity data and disclosures
    • Assessment of whether the insurer’s practices align with federal and state parity laws

  • Investigations and enforcement options:

    • The superintendent shall investigate credible allegations of insurer improprieties and noncompliance.
    • If the superintendent determines willful violation of parity requirements, the findings must be provided to the Office of the Attorney General.
    • The Attorney General, upon agreement with the superintendent, may initiate enforcement actions in the name of the People of the State of New York to enforce compliance.

Who is Affected

  • Insurers and plans covered by the existing parity reporting requirements (as listed above) will be subject to routine DFS audits of their parity reports.
  • Consumers and stakeholders may benefit from enhanced public access to parity data and clearer summaries of insurer performance.
  • State agencies (DFS and OAG) gain stronger tools for oversight and enforcement.

Procedural and Timeline Aspects

  • Audit cadence: Parity reports are due every two years, aligned with the two-year reporting cycle established since 2019.
  • Public posting timeline: The DFS is required to publish the parity reports and a public summary on its website, with a specific emphasis on accessibility and stakeholder understanding.
  • Enforcement timeline: If willful noncompliance is identified, the Attorney General is to act in coordination with the DFS findings to initiate enforcement actions.

Effective Date

  • The act takes effect immediately upon enactment.

If you’d like, I can tailor this summary for a specific audience (e.g., policymakers, insurers, or consumer advocates) or extract potential impact scenarios and compliance considerations.

Compiled from official sources — confirm details with the bill’s official record.

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