Panel hears bill to raise insurance commissioner fines for parity and billing violations

Chairman Lumsden presented House Bill 12 62 to the subcommittee, saying the bill, requested by the Department of Insurance, would modernize the commissioner's authority to levy fines for violations including mental health parity enforcement, surprise billing and prepaid legal services. "The bill increases the maximum fine for unknowing violations from 2,000 to 10,000 and for knowing violations from 5,000 to 25,000," Lumsden said.

Why it matters: Supporters said current caps have not kept pace with inflation and no longer offer a meaningful deterrent. Sarah Phillips, associate director of the Carter Center's Roselyn Carter mental health and caregiver program, urged support and pointed to recent enforcement: "We...applauded commissioner King and the Georgia Department of Insurance for the recently announced $25,000,000 in fines against insurers in violation of parity laws," Phillips said, adding that those actions showed noncompliance was widespread and that low penalties risk becoming a "cost of doing business."

Details: The bill does not create new violations or expand regulatory scope, Lumsden said; it would strengthen the department's enforcement tools under existing law across four areas the sponsor identified: mental-health parity enforcement, general finding authority, surprise-billing violations and prepaid legal service plans. Proponents argued the changes allow the commissioner to impose penalties commensurate with today's market and the seriousness of statutory obligations.

Support and procedure: The Carter Center framed the proposal as building on Georgia's Mental Health Parity Act and said stronger penalties would help ensure access to care by deterring denials and delays that harm patients. The chair noted this was a hearing-only session and no vote was taken; the bill and testimony will be taken up later in committee.

What happens next: The committee did not vote; staff and members said they will continue to review enforcement data and policy details before any formal committee action.