House Bill No. 6937 mandates the Department of Social Services (DSS) to amend the Medicaid state plan to include coverage for medically necessary diapers for children aged three and under. The bill defines "medical necessity" as a determination made by a licensed physician, physician assistant, or advanced practice registered nurse, indicating that diapers are essential to prevent or treat conditions such as severe diaper dermatitis, urinary tract infections, or other health issues related to inadequate diaper hygiene. Additionally, it encompasses other health conditions that may lead to an unusual need to void or delayed toileting behavior.

The bill also requires the DSS commissioner to submit a report by September 1, 2026, detailing the number of children who qualify for this coverage, the associated costs to the state, and the estimated savings from preventing potential health care conditions through access to Medicaid-covered diapers. The implementation of this bill is set to take effect on July 1, 2025, and it is projected to incur a cost of at least $20 million annually to the state Medicaid program.