Senate Bill 401 mandates that certain health insurance policies, specifically disability insurance policies and governmental self-insured health plans, must provide coverage for maternity and newborn care as an essential health benefit. The bill outlines that the commissioner of insurance will establish the specifics of this coverage through rules, which must include limitations on cost-sharing. Additionally, if the maternity or newborn care benefit is already covered under another mandated requirement, the policy or plan must provide the more comprehensive coverage option to the insured or plan participant.

The bill also includes provisions for the commissioner to conduct a survey of employer-sponsored coverage to ensure that the mandated benefits align with typical offerings. It emphasizes that coverage decisions related to maternity and newborn care must not discriminate against individuals based on disability or expected length of life. Furthermore, the commissioner is tasked with periodically updating the benefits to address any gaps in access, and the bill allows for policies to offer benefits beyond the mandated essential health coverage.