California Slaps Kaiser Permanente With $4 Million Fine Over Mental Health Coverage

SACRAMENTO (CBS/AP) -- State officials have fined Kaiser Permanente $4 million, alleging the health care giant failed to provide adequate mental health services.

The fine issued on Tuesday by the California Department of Managed Health Care is the second largest it has ever issued.

Anthem Blue Cross was accused of wrongly rescinding health care coverage and hit with a $10 million fine in 2008.

Investigators say Kaiser failed to see mental health patients fast enough. They also found the company's description of its mental health services complicated and misleading.

According to the managed care department, Kaiser was only fined after it failed to move fast enough to correct deficiencies.

Kaiser Permanente officials say they are making improvements and will challenge the fine, which they say is too stiff.

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