Senate Bill 437 aims to amend Tennessee health insurance laws by introducing a new section that mandates health benefit plans to provide coverage for mental health and substance abuse services through a Psychiatric Collaborative Care Model (PCCM) starting July 1, 2025. The bill defines key terms such as "health benefit plan," "mental health or substance abuse services," and "psychiatric collaborative care model," outlining the collaborative approach between primary care providers, care managers, and psychiatric consultants.

Additionally, the bill stipulates that health benefit plans can only deny coverage for these services on the grounds of medical necessity if they comply with existing state laws and the federal Mental Health Parity and Addiction Equity Act of 2008. Managed care organizations participating in state programs like TennCare and CoverKids are also required to adhere to these coverage mandates if deemed medically necessary. The act is set to take effect on July 1, 2025.