Kaiser Reaches $31M Settlement Over Mental Health Care Practices

Therapists say patients still struggle to get timely help despite the settlement.

Published on Feb. 14, 2026

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Kaiser Permanente has agreed to pay a $31 million settlement with the federal government over the company's mental health care practices. The settlement follows an investigation into Kaiser's compliance with mental health laws. While Kaiser attributed the lack of consistent access to care to surges in demand, mental health workers say the company is still not doing enough to address persistent issues with long wait times and inadequate provider networks.

Why it matters

This case highlights ongoing challenges in the mental health care system, where patients often struggle to access timely and affordable treatment, even at major healthcare providers like Kaiser. The settlement raises questions about whether Kaiser is truly committed to improving mental health services or if it is still prioritizing cost-cutting measures over patient care.

The details

The U.S. Department of Labor ordered Kaiser to reimburse members in California over $28 million for out-of-network mental health and substance abuse treatment costs between January 2021 and September 2024, saying the company failed to provide 'timely and appropriate access' to those services. Kaiser will also pay a $2.8 million penalty. Mental health workers at Kaiser say they first raised concerns with management, which were not addressed, before bringing them to federal regulators.

  • The settlement was announced on February 13, 2026.
  • The investigation covered the period from January 2021 to September 2024.

The players

Kaiser Permanente

A large healthcare provider based in Oakland, California.

U.S. Department of Labor

The federal agency that investigated Kaiser's mental health care practices and ordered the $31 million settlement.

National Union of Healthcare Workers (NUHW)

The union that represents 4,800 of Kaiser's mental health professionals in California and Hawaii.

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What they’re saying

“These challenges made it very difficult for our members to get consistent access to the care they needed when they needed it. We are committed to reimbursing those members who tried but may have been unable to get timely care from Kaiser Permanente in that time.”

— Lena Howland, Spokesperson, Kaiser Permanente (kqed.org)

“A lot of our therapists still can't see patients for weeks at a time. Some of them can't 'refer out' to outside providers. And even if Kaiser is increasing its network, it's doing other things to diminish care.”

— Matthew Artz, Union Spokesperson, National Union of Healthcare Workers (kqed.org)

“Kaiser is not acting like a health care provider that has seen the errors of its ways and wants to provide better mental health care. It's really acting like an insurance company that still wants to spend as little money as possible on mental health and just try to avoid getting in trouble.”

— Matthew Artz, Union Spokesperson, National Union of Healthcare Workers (kqed.org)

What’s next

The National Union of Healthcare Workers is voting on whether to join the ongoing strike by tens of thousands of Kaiser Permanente nurses, pharmacists and other physical health care workers across California.

The takeaway

This settlement highlights the persistent challenges in the mental health care system, where patients often struggle to access timely and affordable treatment, even at major providers. It raises questions about whether Kaiser is truly committed to improving mental health services or if it is prioritizing cost-cutting measures over patient care.