The Passage of HB25-1002 Will Make Sure Coloradans Receive the Life-Saving Mental Health Care Coverage Promised by Their Plans

DENVER, CO – Today, Representatives Kyle Brown (D-Louisville) and Lindsay Gilchrist (D-Denver), along with Senators Judy Amabile (D-Boulder) and Byron Pelton (R-Sterling), introduced HB25-1002 to create fair standards for mental health care coverage in Colorado. The bill will establish a standard definition of “medical necessity” in line with evidence-based best practices and ensure that carriers are not denying coverage for doctor-prescribed, medically necessary mental health and substance use treatment that should be covered under the patient’s health plan. Additionally, the bill clarifies that if insurers deny care because they have determined that it is “medically unnecessary,” the criteria they use to make that decision will be transparent, aligned with the standards established by national clinician organizations, and available to the patient and their physician.

1.11 million people living in Colorado have a diagnosed mental health condition, yet only 25.4% of those with a diagnosis and commercial insurance receive the specialty care they need. Inconsistent and opaque rules from insurance providers often lead to delays, denials, and treatments being cut short. This lack of treatment can lead to worsening conditions and mental health crises resulting in hospitalization, suicide, overdose, or co-occuring conditions. Individuals with untreated mental health conditions face greater risks of emergency department visits, unemployment, homelessness, and incarceration, impacting the health of entire communities.

Faced with an insurance denial, a patient either has to forgo the mental health care their doctors have prescribed or be forced to pay thousands of dollars in out-of-pocket expenses – on top of the premiums they’re already paying for denied coverage. Coloradans are 9x more likely to be forced to choose an out-of-network provider for mental health care than for primary care.

“When someone is struggling, the last thing they or their family needs is to worry about whether or not their treatment will be covered – especially when they are paying premiums every month. We need fair standards in mental health care,” said Representative Kyle Brown. “Insurance plans should cover care for mental health, and those treatments should be determined by doctors based on the best evidence. Every Coloradan should be able to count on their insurance company to cover the mental health and substance use care they need when they need it.”

Senator Byron Pelton said, “Receiving mental health treatment in Colorado has become extremely difficult, and it hits rural and agricultural communities especially hard. It should be easy for people to get the mental health care they need but right now it’s a struggle. We are going to change that by passing this bill and getting fair standards in mental health care. I am proud to be a prime sponsor on this bill because when it becomes law, it will make a real difference in the lives of so many in District 1 and across the state.”

“Despite existing parity laws at the state and federal levels, many Coloradans continue to experience gaps in coverage for mental health, behavioral health, and substance use disorder treatment – even when these benefits are promised by their health plans,” said Adriana Hidalgo, Executive Vice President at Healthier Colorado. “Healthier Colorado is proud to advance legislation that closes these gaps and ensures Coloradans actually receive the life-saving mental health care they’ve paid for.”

“We are thrilled to see this bill addressing fair standards in mental health care introduced on day one of the legislative session,” said Jake Swanton, VP of State Affairs at Inseparable. “And even more thrilled to know it is co-sponsored by a bipartisan slate of legislators committed to getting it passed. It will mean thousands of Coloradans can get the mental health care they need.”

According to polling conducted by Magellan Strategies and Keating Research in December 2024, 87% of Coloradans support requiring private health insurance companies to cover mental health care deemed medically necessary by a patient’s doctor.

HB25-1002 is supported by leading organizations, including Children’s Hospital Colorado, Colorado Center on Law and Policy, Colorado Consumer Health Initiative, Colorado Cross Disability Coalition, CO PMHP – The Birth Squad, Disability Law Colorado, Healthier Colorado, Inseparable, Mental Health Colorado, NAMI-Colorado, National Association of Social Workers (NASW) – Colorado Chapter, and Small Business Majority – Colorado.

Additional information can be found in this factsheet.