AN ACT CONCERNING COMPLIANCE WITH MENTAL HEALTH PARITY LAWS.

SB 1004 requires Connecticut's Insurance Department to regularly audit health insurance companies to verify they comply with both federal mental health parity laws (the Paul Wellstone and Pete Domenici Act) and state regulations. It directly affects health insurance companies by mandating these audits and imposing a $50,000 civil penalty for each violation of mental health parity rules. The bill establishes a clear enforcement mechanism through regular audits and financial penalties for non-compliance. This aims to ensure insurance plans cover mental health and substance use disorder treatments equally to physical health care, as required by law.