House File 89 - Introduced
HOUSE FILE
BY JOCHUM, SMITH, PETTENGILL, SWAIM,
JACOBY, FORD, WHITAKER, SCHUELLER,
COHOON, BELL, FALLON, MILLER, HOGG,
SHOULTZ, MASCHER, LENSING, WHITEAD,
KRESSIG, WINCKLER, WENDT, BERRY,
WESSEL=KROESCHELL, THOMAS, HEDDENS,
DANDEKAR, KUHN, D. TAYLOR, R. OLSON,
BUKTA, FOEGE, SHOMSHOR, REICHERT,
REASONER, MERTZ, ZIRKELBACH, and
GASKILL
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to third=party payment of health care coverage
2 costs for mental health conditions, including alcohol or
3 substance abuse treatment services.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1645HH 81
6 av/sh/8
PAG LIN
1 1 Section 1. NEW SECTION. 514C.22 MANDATED COVERAGE FOR
1 2 MENTAL HEALTH CONDITIONS.
1 3 1. For purposes of this section, unless the context
1 4 otherwise requires:
1 5 a. "Mental health condition" means a condition or disorder
1 6 involving mental illness or alcohol or substance abuse that
1 7 falls under any of the diagnostic categories listed in the
1 8 mental disorders section of the international classification
1 9 of disease, as periodically revised.
1 10 b. "Rates, terms, and conditions" means any lifetime
1 11 payment limits, deductibles, copayments, coinsurance, and any
1 12 other cost=sharing requirements, out=of=pocket limits, visit
1 13 limitations, and any other financial component of benefits
1 14 coverage that affects the covered individual.
1 15 2. a. Notwithstanding section 514C.6, a policy or
1 16 contract providing for third=party payment or prepayment of
1 17 health or medical expenses shall provide coverage benefits for
1 18 mental health conditions based on rates, terms, and conditions
1 19 which are no more restrictive than the rates, terms, and
1 20 conditions for coverage benefits provided for other health or
1 21 medical conditions under the policy or contract.
1 22 Additionally, any rates, terms, and conditions involving
1 23 deductibles, copayments, coinsurance, and any other cost=
1 24 sharing requirements shall be cumulative for coverage of both
1 25 mental health conditions and other health or medical
1 26 conditions under the policy or contract.
1 27 b. Coverage required under this subsection shall be as
1 28 follows:
1 29 (1) For the treatment of mental illness, coverage shall be
1 30 for services provided by a licensed mental health
1 31 professional, or services provided in a licensed hospital or
1 32 health facility.
1 33 (2) For the treatment of alcohol or substance abuse,
1 34 coverage shall be for services provided by a substance abuse
1 35 counselor, as approved by the department of human services, a
2 1 licensed health facility providing a program for the treatment
2 2 of alcohol or substance abuse approved by the department of
2 3 human services, or a substance abuse treatment and
2 4 rehabilitation facility, as licensed by the department of
2 5 public health pursuant to chapter 125.
2 6 3. This section applies to the following classes of third=
2 7 party payment provider contracts or policies delivered, issued
2 8 for delivery, continued, or renewed in this state on or after
2 9 January 1, 2006:
2 10 a. Individual or group accident and sickness insurance
2 11 providing coverage on an expense=incurred basis.
2 12 b. An individual or group hospital or medical service
2 13 contract issued pursuant to chapter 509, 514, or 514A.
2 14 c. A plan established pursuant to chapter 509A for public
2 15 employees.
2 16 d. An individual or group health maintenance organization
2 17 contract regulated under chapter 514B.
2 18 e. An individual or group Medicare supplemental policy,
2 19 unless coverage pursuant to such policy is preempted by
2 20 federal law.
2 21 f. Any other entity engaged in the business of insurance,
2 22 risk transfer, or risk retention, which is subject to the
2 23 jurisdiction of the commissioner.
2 24 g. An organized delivery system licensed by the director
2 25 of public health.
2 26 4. The commissioner shall adopt rules to administer this
2 27 section after consultation with the mental health insurance
2 28 advisory committee.
2 29 a. The commissioner shall appoint members to a mental
2 30 health insurance advisory committee. Members shall include
2 31 all sectors of society impacted by issues associated with
2 32 coverage of mental health treatment by third=party payors
2 33 including, but not limited to, representatives of the
2 34 insurance industry, small and large employers, employee
2 35 representatives including labor, individual consumers, health
3 1 care providers, and other groups and individuals that may be
3 2 identified by the insurance division of the department of
3 3 commerce.
3 4 b. The committee shall meet upon the request of the
3 5 commissioner to review rules proposed under this section by
3 6 the commissioner, and to make suggestions as appropriate.
3 7 EXPLANATION
3 8 This bill creates new Code section 514C.22 and provides
3 9 that a policy or contract providing for third=party payment or
3 10 prepayment of health or medical expenses must provide coverage
3 11 benefits for mental health conditions based on rates, terms,
3 12 and conditions which are no more restrictive than the rates,
3 13 terms, and conditions associated with coverage benefits
3 14 provided for other conditions under the policy or contract.
3 15 Mental health conditions are defined to mean a condition or
3 16 disorder involving mental illness or alcohol or substance
3 17 abuse that falls under any of the diagnostic categories listed
3 18 in the mental disorders section of the international
3 19 classification of disease, as periodically updated.
3 20 The bill also requires the insurance commissioner to adopt
3 21 rules to administer this section, after consultation with the
3 22 new mental health insurance advisory committee, whose members
3 23 are appointed by the commissioner from business, consumer, and
3 24 health groups.
3 25 LSB 1645HH 81
3 26 av/sh/8