Assembly Bill 402 mandates that certain health insurance policies, specifically disability insurance policies and governmental self-insured health plans, must cover 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 prohibits discrimination in coverage decisions based on disability or expected length of life and allows for periodic updates to the maternity and newborn care benefits to address any access gaps. Furthermore, the bill clarifies that it does not restrict policies from offering benefits beyond the mandated essential health coverage.