2025 -- H 5461

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LC001590

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE HEALTHCARE SERVICES

FUNDING PLAN ACT

     Introduced By: Representatives Shallcross Smith, Fogarty, Casimiro, Tanzi, Ackerman,
Kislak, Cotter, DeSimone, Morales, and Noret

     Date Introduced: February 12, 2025

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-7.4-3 of the General Laws in Chapter 42-7.4 entitled "The

Healthcare Services Funding Plan Act" is hereby amended to read as follows:

     42-7.4-3. Imposition of healthcare services funding contribution. [As enacted in 2014.]

     (a) Each insurer is required to pay the healthcare services funding contribution for each

contribution enrollee of the insurer at the time the contribution is calculated and paid, at the rate set

forth in this section.

     (1) Beginning January 1, 2016 July 1, 2025, the secretary shall set the healthcare services

funding contribution each fiscal year in an amount equal to: (i) The child immunization funding

requirement described in § 23-1-46; plus (ii) The adult immunization funding requirement

described in § 23-1-46; plus (iii) The children’s health services funding requirement described in §

42-12-29; plus (iv) The psychiatry resource network funding requirement described in § 23-1-46.2

and all as divided by; (iv)(v) The number of contribution enrollees of all insurers.

     (2) The contribution set forth herein shall be in addition to any other fees or assessments

upon the insurer allowable by law.

     (b) The contribution shall be paid by the insurer; provided, however, a person providing

health benefits coverage on a self-insurance basis that uses the services of a third-party

administrator shall not be required to make a contribution for a contribution enrollee where the

contribution on that enrollee has been or will be made by the third-party administrator.

     (c) The secretary shall create a process to facilitate the transition to the healthcare services

funding contribution method that: (i) assures adequate funding beginning July 1, 2016, (ii) reflects

that funding via the healthcare services funding contribution method initially will be for only a

portion of the state’s fiscal year, and (iii) avoids duplicate liability for any insurer that made a

payment under the premium assessment method in effect prior to January 1, 2016, for a period for

which it would also be liable for a contribution under the healthcare services funding contribution

method as described in this chapter.

     SECTION 2. Chapter 23-1 of the General Laws entitled "Department of Health" is hereby

amended by adding thereto the following section:

     23-1-46.2. Psychiatry resource network account.

     (a) There is created within the general fund a restricted receipt account to be known as the

"PRN account." All money in the account shall be utilized by the department of health to effectuate

coverage for the following services: Existing Rhode Island lines including the PediPRN and

MomsPRN information lines together with any additional information line, referral service, or

hotline which is available to providers or residents in the state, and which is funded pursuant to

regulation adopted by the director of the department of health. Amounts collected pursuant to § 42-

7.4-3(a)(1)(iv) shall be collected by the department of health and deposited in the "PRN account."

The funds shall be used solely for the purposes of the "PRN account," and no other.

     (b) Each year's psychiatry resource network funding requirement in § 42-7.4-3(a)(1)(iv)

shall be the amount projected by the department of health in subsection (a) of this section and

approved by the PRN advisory committee.

     (c) The department of health shall establish a PRN advisory committee, as determined by

the director of the department of health, that may include representatives from the department of

health; the office of the health insurance commissioner; the executive office of health and human

services; the department of behavioral healthcare, developmental disabilities, and hospitals;

insurers; and other representatives as indicated.

     (d) The department of health shall submit to the general assembly an annual report on the

program and costs related to the program, on or before February 1 of each year. The department

shall make available to each insurer required to make a contribution pursuant to § 42-7.4-3, upon

its request, detailed information regarding the programs described in subsection (a) of this section

and the costs related to those programs

     (e) The "PRN account" shall be exempt from the indirect costs recovery provisions of §

35-4-27.

     SECTION 3. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds"

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is hereby amended to read as follows:

     35-4-27. Indirect cost recoveries on restricted receipt accounts. [Effective January 1,

2025.]

     Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all

restricted receipt accounts, to be recorded as general revenues in the general fund. However, there

shall be no transfer from cash receipts with restrictions received exclusively: (1) From contributions

from nonprofit charitable organizations; (2) From the assessment of indirect cost-recovery rates on

federal grant funds; or (3) Through transfers from state agencies to the department of administration

for the payment of debt service. These indirect cost recoveries shall be applied to all accounts,

unless prohibited by federal law or regulation, court order, or court settlement. The following

restricted receipt accounts shall not be subject to the provisions of this section:

     Executive Office of Health and Human Services

     Organ Transplant Fund

     HIV Care Grant Drug Rebates

     Health System Transformation Project

     Rhode Island Statewide Opioid Abatement Account

     HCBS Support-ARPA

     HCBS Admin Support-ARPA

     Department of Human Services

     Veterans’ home — Restricted account

     Veterans’ home — Resident benefits

     Pharmaceutical Rebates Account

     Demand Side Management Grants

     Veteran’s Cemetery Memorial Fund

     Donations — New Veterans’ Home Construction

     Commodity Supplemental Food Program-Claims

     Department of Health

     Pandemic medications and equipment account

     Miscellaneous Donations/Grants from Non-Profits

     State Loan Repayment Match

     Healthcare Information Technology

     Healthcare services funding accounts for the psychiatry resource network (PRN)

     Department of Behavioral Healthcare, Developmental Disabilities and Hospitals

     Eleanor Slater non-Medicaid third-party payor account

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     Hospital Medicare Part D Receipts

     RICLAS Group Home Operations

     Group Home Facility Improvement Fund

     Commission on the Deaf and Hard of Hearing

     Emergency and public communication access account

     Department of Environmental Management

     National heritage revolving fund

     Environmental response fund II

     Underground storage tanks registration fees

     De Coppet Estate Fund

     Rhode Island Historical Preservation and Heritage Commission

     Historic preservation revolving loan fund

     Historic Preservation loan fund — Interest revenue

     Department of Public Safety

     E-911 Uniform Emergency Telephone System

     Forfeited property — Retained

     Forfeitures — Federal

     Forfeited property — Gambling

     Donation — Polygraph and Law Enforcement Training

     Rhode Island State Firefighter’s League Training Account

     Fire Academy Training Fees Account

     Attorney General

     Forfeiture of property

     Federal forfeitures

     Attorney General multi-state account

     Forfeited property — Gambling

     Department of Administration

     OER Reconciliation Funding

     Health Insurance Market Integrity Fund

     RI Health Benefits Exchange

     Information Technology restricted receipt account

     Restore and replacement — Insurance coverage

     Convention Center Authority rental payments

     Investment Receipts — TANS

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     OPEB System Restricted Receipt Account

     Car Rental Tax/Surcharge-Warwick Share

     Grants Management Administration

     RGGI-Executive Climate Change Coordinating Council Projects

     Electric Vehicle Charging Stations Operating and Maintenance Account

     Department of Housing

     Housing Resources and Homelessness Restricted Receipt Account

     Housing Production Fund

     Low-Income Housing Tax Credit Fund

     Department of Revenue

     DMV Modernization Project

     Jobs Tax Credit Redemption Fund

     Legislature

     Audit of federal assisted programs

     Department of Children, Youth and Families

     Children’s Trust Accounts — SSI

     Military Staff

     RI Military Family Relief Fund

     RI National Guard Counterdrug Program

     Treasury

     Admin. Expenses — State Retirement System

     Retirement — Treasury Investment Options

     Defined Contribution — Administration - RR

     Violent Crimes Compensation — Refunds

     Treasury Research Fellowship

     Business Regulation

     Banking Division Reimbursement Account

     Office of the Health Insurance Commissioner Reimbursement Account

     Securities Division Reimbursement Account

     Commercial Licensing and Racing and Athletics Division Reimbursement Account

     Insurance Division Reimbursement Account

     Historic Preservation Tax Credit Account

     Marijuana Trust Fund

     Social Equity Assistance Fund

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     Judiciary

     Arbitration Fund Restricted Receipt Account

     Third-Party Grants

     RI Judiciary Technology Surcharge Account

     Department of Elementary and Secondary Education

     Statewide Student Transportation Services Account

     School for the Deaf Fee-for-Service Account

     School for the Deaf — School Breakfast and Lunch Program

     Davies Career and Technical School Local Education Aid Account

     Davies — National School Breakfast & Lunch Program

     School Construction Services

     Office of the Postsecondary Commissioner

     Higher Education and Industry Center

     IGT STEM Scholarships

     Department of Labor and Training

     Job Development Fund

     Contractor Training Restricted Receipt Account

     Rhode Island Council on the Arts

     Governors’ Portrait Donation Fund

     Statewide records management system account

     SECTION 4. This act shall take effect on July 1, 2025.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE HEALTHCARE SERVICES

FUNDING PLAN ACT

***

     This act would amend Rhode Island’s existing healthcare services funding plan act by

adding an account relating to a new psychiatry resource network to fund Rhode Island’s present

PediPRN and MomsPRN, as well as similar programs which may be added by regulation in the

future. It would also add an assessment to those previously authorized by the healthcare services

funding plan act for purposes of funding this new account.

     This act would take effect on July 1, 2025.

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