13-02-2025
Proposed bill could limit insurance coverage for mental health and substance abuse
LITTLE ROCK, Ark. (KNWA/KFTA) — A proposed bill could eliminate coverage mandates for mental health and substance abuse treatments under employer-provided insurance in Arkansas.
HB 1420 was introduced in the Arkansas House on Feb. 5 by State Rep. Trey Steimel (R-Pocahontas) and co-sponsored by State Rep. Justin Boyd (R-Fort Smith).
The bill would repeal requirements for insurers to cover drug, alcohol and mental health treatments, as well as certain rehabilitation services. It would also end funding for the Comprehensive Health Insurance Pool (CHIP) and reduce state oversight of mental health coverage.
If HB1420 passes, insurance providers would no longer be required to offer or make alcohol or drug dependency treatments under employer-provided insurance.
Currently, Arkansas Code § 23-79-139 requires insurers, hospitals, medical service corporations, and health maintenance organizations to provide coverage for the treatment of alcohol and drug dependency.
If repealed, it would:
Remove mandated coverage for services under the Comprehensive Health Insurance Pool (CHIP).
Eliminate state-established requirements for the coverage of hospital care and prescription drugs.
Discontinue funding for the Comprehensive Health Insurance Pool (CHIP).
End enrollment procedures and eligibility criteria for CHIP.
Terminate the requirement for the state to provide access to CHIP for eligible individuals.
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CHIP (Comprehensive Health Insurance Pool) in Arkansas provides health insurance for people with pre-existing conditions who have been uninsured for at least six months.
It operates alongside the federal Pre-existing Condition Insurance Plan (PCIP) and is funded by federal money. The program offers lower premiums and is available to about 2,500 people in the state.
CHIP in Arkansas is funded through premium taxes and assessments levied on insurance providers.
Arkansas Code § 23-86-113 currently mandates minimum mental health benefits for group accident and health insurance policies or subscriber's contracts. If repealed:
Remove the requirement for group insurance policies to provide inpatient, partial hospitalization or outpatient benefits for mental illness.
Eliminate the obligation for insurers to cover services from hospitals, psychiatric hospitals, outpatient psychiatric centers, physicians, psychologists or community mental health centers for mental illness.
Repeal rules preventing insurers from imposing limits on deductibles, lifetime maximum payments or payment limits for smaller employers (50 or fewer employees).
Remove restrictions on the disclosure of mental health information without written consent, except in certain circumstances such as litigation, reinsurance or underwriting.
Eliminate the requirement for insurers to provide more extensive mental health coverage than the minimum required.
Repeal the mandate for insurers to offer coverage for services rendered by licensed professional counselors in employer-provided insurance.
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Arkansas Code § 23-99-508 currently allows healthcare insurers to provide optional coverage for health services used in the treatment of mental illnesses. If repealed, it would:
Remove provisions allowing insurers to cover services like intensive case management, community residential treatment programs, or social rehabilitation programs.
Repeal the allowance for healthcare insurers to provide coverage for physical rehabilitation or durable medical equipment not generally used in the treatment of serious mental illnesses.
Eliminate the provision permitting healthcare insurers to use common utilization management protocols, such as preadmission screening or prior authorization, for mental illness services.
Remove the option for healthcare insurers to comply with the terms of this subchapter for educational remediation regarding mental illness treatment.
Under MHPAEA, insurers must provide mental health and substance use disorder benefits on par with medical benefits, with no more restrictive financial or treatment limits. They must also document non-quantitative treatment limitations.
The Affordable Care Act mandates these services as essential benefits in individual and small-group plans.
Read the full proposed bill below:
FTPDocumentDownload
The bill's status is 'Read the first time, rules suspended, read the second time and referred to the Committee on INSURANCE & COMMERCE- HOUSE' as of Feb. 12.
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