Kaiser agrees to $200M settlement after behavioral health investigations

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Kaiser agrees to $200M settlement after behavioral health investigations
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The settlement comes in the midst of another labor dispute for Kaiser. More than 75,000 lower-paid Kaiser employees in five states carried out a three-day walkout as they appealed for better pay. T…

File photo: Carmen Grant, left, and fellow Kaiser Permanente healthcare workers form a picket line as they begin a strike nationwide at Kaiser Oakland Medical Center in Oakland, Calif., on Wednesday, Oct. 4, 2023.Health care giant Kaiser Permanente agreed to a $200 million settlement with the state of California to resolve investigations into its behavioral health system that showed patients experienced delays in care.

California’s Department of Managed Health Care announced its investigation into Kaiser in May 2022, when the agency received an unusual number of “complaints received from enrollees, providers, and other stakeholders concerning the plan’s behavioral health operations.” The settlement comes in the midst of another labor dispute for Kaiser. More than 75,000 lower-paid Kaiser employees in five states carried out a three-day walkout as they appealed for better pay. The union coalition representing them has warned that another walkout is possible next month.

“The DMHC is committed to using its full authority to hold Kaiser accountable and ensure enrollees have access to behavioral health care when they need it,” said Mary Watanabe, director of the department.Greg Adams, Kaiser Permanente’s chief executive officer, in a statement noted that California is experiencing an unprecedented demand for mental health care.

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