SF1408 (Legislative Session 94 (2025-2026))
Insurers prohibition from requiring co-payments for children's mental health services
Related bill: HF32
AI Generated Summary
Purpose
The bill aims to remove financial barriers to pediatric mental health care by prohibiting health plans from requiring copayments for mental health services for children under age 18. It also creates a specific exception for high-deductible health plans paired with health savings accounts (HDHP/HSA): in those plans, a copayment must be charged for a child’s mental health services, but only at the minimum level needed to keep the enrollee able to contribute to and withdraw from the HSA under the Internal Revenue Code.
Main Provisions
- Prohibition on copayments for mental health services for children under 18:
- A health plan company may not require a copayment for mental health services received by a child under 18.
- HDHP with HSA exception:
- For health plans that are high-deductible and paired with a health savings account, the plan must require a copayment for mental health services for a child under 18.
- The copayment must be at the minimum level necessary to preserve the enrollee’s ability to make tax-exempt contributions to, and withdrawals from, the HSA as provided under section 223 of the Internal Revenue Code.
- The provisions are proposed to be codified in Minnesota Statutes, Chapter 62Q, relating to mental health and copayments for children.
Significant Changes
- Removes or blocks general copayments for pediatric mental health services in most health plans.
- Introduces a targeted exception for HDHP/HSA plans, tying the required copayment to federal tax rules (IRS Section 223) to ensure HSA contribution/withdrawal eligibility remains intact.
- Represents a shift in how copayments for children's mental health services are handled, balancing access to care with compliance for tax-advantaged accounts.
Potential Considerations
- Families with HDHP/HSA plans may face a small copayment requirement, even as other plans eliminate copayments for pediatric mental health care.
- The change ties state health plan requirements to federal tax provisions, which may require coordination with IRS rules.
Relevant Terms - copayment (copay) - copayments for mental health services - mental health services - child under 18 / minors - health plan - high-deductible health plan (HDHP) - health savings account (HSA) - Internal Revenue Code, section 223 - tax-exempt contributions and withdrawals - Minnesota Statutes Chapter 62Q - pediatric mental health care - minimum copayment level
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 13, 2025 | Senate | Action | Introduction and first reading | ||
| February 13, 2025 | Senate | Action | Referred to | Commerce and Consumer Protection |
Citations
[
{
"analysis": {
"added": [
"Prohibits copayments for mental health services for children under 18 by health plan companies."
],
"removed": [],
"summary": "This bill references Minnesota Statutes chapter 62Q as the authority under which health insurance copayment provisions would be codified.",
"modified": []
},
"citation": "62Q",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "The bill references federal law (Internal Revenue Code) section 223 to justify a minimum copayment level for mental health services provided to children in conjunction with health savings accounts.",
"modified": []
},
"citation": "26 U.S.C. § 223",
"subdivision": ""
}
]