2021 -- S 0591 SUBSTITUTE A | |
======== | |
LC002260/SUB A | |
======== | |
STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2021 | |
____________ | |
A N A C T | |
RELATING TO INSURANCE -- COVERAGE FOR MENTAL ILLNESS AND SUBSTANCE | |
ABUSE | |
| |
Introduced By: Senators Miller, Lawson, DiPalma, DiMario, Valverde, Archambault, | |
Date Introduced: March 11, 2021 | |
Referred To: Senate Health & Human Services | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Legislative findings. |
2 | The general assembly finds and declares that: |
3 | (1) According to Mental Health America’s 2021 report, fifty thousand (50,000) Rhode |
4 | Islanders, or twenty-seven and nine-tenths percent (27.9%) of adults experiencing a mental illness, |
5 | reported that they were not able to receive the treatment they needed. Rhode Island has the highest |
6 | prevalence of untreated adults with mental illness of any state in New England, and has a higher |
7 | prevalence than the national average of twenty-three and sixth-tenths percent (23.6%). |
8 | (2) The Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA, or the Act) |
9 | and state mental health parity laws require “behavioral healthcare benefits” (benefits for mental |
10 | health and substance use disorders) that are covered by most health insurance plans to be treated at |
11 | parity with medical/surgical benefits. |
12 | (3) The 2010 Affordable Care Act (ACA) requires coverage of mental health and substance |
13 | use services as an “essential health benefit”. The ACA built on the federal Mental Health Parity |
14 | and Addiction Equity Act of 2008, which requires many group insurance plans that cover mental |
15 | health and substance use services to do so as generously as medical and surgical services. |
16 | (4) In the Milliman research group’s 2019 report, entitled, “Addiction and mental health |
17 | vs. physical health: Widening disparities in network use and provider reimbursement,” researchers |
18 | demonstrated that in Rhode Island patients were four and twenty-eight hundredths (4.28) times or |
| |
1 | four hundred twenty-eight percent (428%) more likely to have to go out of network for a mental |
2 | health office visit than for a primary care visit in 2017, which is an increase from two and twenty- |
3 | eight hundredths (2.28) times or two hundred twenty-eight percent (228%) in 2013. |
4 | (5) According to the Milliman report, in Rhode Island, mental health professionals received |
5 | twenty-three and four-tenths percent (23.4%) less than other specialists for similar billing codes for |
6 | the evaluation and management of conditions in 2017. |
7 | (6) The 2015 Truven Health Analytics study, which was done on behalf of the State of |
8 | Rhode Island, found that “public financing for behavioral health care for adults and adolescents |
9 | dropped from one hundred ten million dollars ($110,000,000) in 2007 to ninety-seven million |
10 | dollars ($97,000,000) in 2014. State funding for substance abuse services dropped from about |
11 | fifteen million five hundred thousand dollars ($15,500,000) to five million ($5,000,000).” |
12 | (7) Rhode Island increased its primary care investment by nearly forty percent (40%) |
13 | between 2008 and 2012, which led to ninety-five percent (95%) of practice sites achieving “medical |
14 | home” status, a seven and two-tenths percent (7.2%) reduction in hospital admissions, a five percent |
15 | (5%) reduction in costs, and savings of thirty million dollars ($30,000,000). |
16 | (8) An increased investment in behavioral health care services, which includes mental |
17 | health and substance use disorder services and treatments, is anticipated to increase access to care |
18 | and decrease overall costs to the healthcare system by reducing hospital and inpatient care |
19 | admissions much like the investment in primary care described in subsection 7. |
20 | (9) Therefore, the state of Rhode Island reaffirms its commitment to achieving parity and |
21 | hereby requires all commercial and public payers to increase their rates of reimbursement for all |
22 | in-network behavioral health care services other than inpatient psychiatric hospitalization by twenty |
23 | three and four-tenths percent (23.4%) over the next five (5) years by July 1, 2027 by a minimum |
24 | of a four percent (4%) increase per year. |
25 | SECTION 2. Chapter 27-38.2 of the General Laws entitled "Insurance Coverage for Mental |
26 | Illness and Substance Abuse" is hereby amended by adding thereto the following section: |
27 | 27-38.2-6. Reimbursement rate parity for mental health and substance use disorders. |
28 | (a) Every individual or group health insurance contract, plan or policy delivered, issued for |
29 | delivery or renewed in this state on or after January 1, 2022, shall increase rates of reimbursement |
30 | for each in-network behavioral health care service other than inpatient psychiatric hospitalization |
31 | by a minimum of twenty-three and four-tenths percent (23.4%) over the following five (5) years, |
32 | with a minimum increase in the first year of three and two-tenths percent (3.2%), and a minimum |
33 | increase of four and five-tenths percent (4.5%) each year thereafter. The total minimum increase of |
34 | twenty-three and four-tenths percent (23.4%) must be completed on or before July 1, 2027. |
| LC002260/SUB A - Page 2 of 5 |
1 | (b) Each health insurer shall collect and provide to the office of the health insurance |
2 | commissioner (OHIC), in a form and frequency acceptable to OHIC, information and data |
3 | reflecting its increases to reimbursement rates for each in-network behavioral health care service, |
4 | other than inpatient psychiatric hospitalization as described in subsection (a) of this section. |
5 | (c)(1) On or before July 1, 2022, OHIC, in collaboration with the executive office of health |
6 | and human services, shall issue a report to the general assembly. This report shall include |
7 | recommendations for evidence-based rate increases to be applied to in-network behavioral health |
8 | care services. The goal of these rate increase recommendations shall be to increase patient access |
9 | to behavioral health care services by promoting behavioral health provider recruitment and |
10 | retention. |
11 | (2) This report shall include a justified cost estimate to implement such rate increase |
12 | recommendations. |
13 | (d)(1) OHIC shall monitor how reimbursement rate increases described in this section |
14 | affect patient access to behavioral health care services, including, but not limited to, any changes |
15 | related to behavioral health network adequacy. On or before July 1, 2023, and each July 1 thereafter, |
16 | OHIC shall report any changes to behavioral health care access and network adequacy to the |
17 | general assembly in writing. |
18 | (2) "Network", as used in this section, shall have the same meaning as is defined and used |
19 | in chapter 18.8 of this title. |
20 | (e) On or before July 1, 2027, OHIC shall notify the general assembly in writing when each |
21 | health insurer has met their rate increase obligation as described in subsection (a) of this section. |
22 | (f)(1) OHIC shall promulgate such rules and regulations as are necessary and proper to |
23 | effectuate the purpose and for the efficient administration and enforcement of this section. |
24 | (2) Should OHIC find that a health insurer is not in compliance with the requirements found |
25 | in this section, OHIC’s authority shall include, but not be limited to, requiring a health insurer to |
26 | complete a corrective action plan. |
27 | SECTION 3. Chapter 42-7.2 of the General Laws entitled "Office of Health and Human |
28 | Services" is hereby amended by adding thereto the following section: |
29 | 42-7.2-21. Reimbursement rate parity for mental health and substance use disorder. |
30 | (a) Effective January 1, 2022, Rhode Island Medicaid and its contracted managed care |
31 | entities shall increase rates of reimbursement for each in-network behavioral health care service, |
32 | other than inpatient psychiatric hospitalization, by a minimum of twenty-three and four-tenths |
33 | percent (23.4%) over the following five (5) years, with a minimum increase in the first year of three |
34 | and two-tenths percent (3.2%), and a minimum increase of four and five-tenths percent (4.5%) each |
| LC002260/SUB A - Page 3 of 5 |
1 | year thereafter. The total minimum increase of twenty-three and four-tenths percent (23.4%) must |
2 | be completed on or before July 1, 2027. |
3 | (b) Each of Rhode Island Medicaid’s contracted managed care entities shall collect and |
4 | provide the executive office of health and human services (EOHHS), in a form and frequency |
5 | acceptable to EOHHS, information and data reflecting its increases to reimbursement rates for each |
6 | in-network behavioral health care service, other than inpatient psychiatric hospitalization |
7 | reimbursement rates as described in subsection (a) of this section. |
8 | (c)(1) On or before July 1, 2022, EOHHS, in collaboration with the office of the health |
9 | insurance commissioner, shall issue a report to the general assembly. This report shall include |
10 | recommendations for evidence-based rate increases to be applied to each in-network behavioral |
11 | health care services. The goal of these rate increase recommendations shall be to increase patient |
12 | access to behavioral health care services by promoting behavioral health provider recruitment and |
13 | retention. |
14 | (2) This report shall include a justified cost estimate to implement such rate increase |
15 | recommendations. |
16 | (d)(1) EOHHS shall monitor how reimbursement rate increases described in this section |
17 | affect patient access to behavioral health care services, including, but not limited to, any changes |
18 | related to behavioral health network adequacy. On or before July 1, 2023, and each July 1 thereafter, |
19 | EOHHS shall report any changes to behavioral health care access and network adequacy to the |
20 | general assembly in writing. |
21 | (e) On or before July 1, 2027, EOHHS shall notify the general assembly in writing when |
22 | each contracted managed care entity has met their rate increase obligation as described in |
23 | subsection (a) of this section. |
24 | (f)(1) EOHHS shall promulgate such rules and regulations as are necessary and proper to |
25 | effectuate the purpose and for the efficient administration and enforcement of this section. |
26 | (2) Should EOHHS find that Rhode Island Medicaid and its contracted managed care |
27 | entities are not in compliance with the requirements found in this section, EOHHS’s authority shall |
28 | include, but not be limited to, requiring a contracted manage care entity to complete a corrective |
29 | action plan. |
| LC002260/SUB A - Page 4 of 5 |
1 | SECTION 4. This act shall take effect upon passage. |
======== | |
LC002260/SUB A | |
======== | |
| LC002260/SUB A - Page 5 of 5 |
EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO INSURANCE -- COVERAGE FOR MENTAL ILLNESS AND SUBSTANCE | |
ABUSE | |
*** | |
1 | This act would increase reimbursement rates for behavioral health providers over a five (5) |
2 | year period. The minimum increase of twenty-three and four-tenths percent (23.4%) over the |
3 | following five (5) years, with a minimum increase in the first year of three and two-tenths percent |
4 | (3.2%), and a minimum increase of four and five-tenths percent (4.5%) each year thereafter. |
5 | This act would take effect upon passage. |
======== | |
LC002260/SUB A | |
======== | |
| LC002260/SUB A - Page 6 of 5 |