This bill introduces new reporting requirements for health insurance carriers concerning mental health and substance use disorder coverage. Specifically, it mandates that each health insurance carrier submit an annual report to the insurance department by March 1, detailing their policies, procedures, and data related to mental health and substance use disorder services. The report must include information on utilization management practices, claims denial rates, average wait times for appointments, provider network adequacy, and compliance with federal mental health parity laws. The insurance commissioner is tasked with reviewing these reports annually to ensure compliance with state and federal regulations and may establish penalties for non-compliance. Additionally, the commissioner is required to prepare a biennial report summarizing trends and compliance status for legislative action.

Furthermore, the bill requires the commissioner of the Department of Health and Human Services to prepare an annual report starting March 1, 2027, regarding the adequacy of mental health coverage and substance use disorder treatment under the state Medicaid program. This report will also include similar data points as those required from health insurance carriers. The act will take effect 60 days after its passage. The bill does not provide funding or authorize new positions, and its fiscal impact is currently indeterminable as the Department of Health and Human Services has not yet provided a complete fiscal note.

Statutes affected:
Introduced: 126-A:3
HB1744 text: 126-A:3