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H 8268Health Insurance

State Affairs and Government - The Healthcare Services Funding Plan Act

Imposes a $30 million annual assessment on health insurers to fund mental health consultation services for mothers and children.

Held for study
Population
Affected
35
Introduced Mar 11, 2026Committee House Finance

Plain-English Summary

This legislation modifies how Rhode Island funds specific mental health support services. Starting in 2026, the state will impose a total assessment of $30 million on health insurance companies. This money will be deposited into the state's general revenue fund to support primary care and critical healthcare programs, specifically the "MomsPRN" and "PediPRN" teleconsultation lines. These programs allow doctors to consult with psychiatrists regarding pregnant women, new mothers, and children. The bill also moves the management of these programs under the Department of Health and removes the requirement that these funds be kept in a separate, restricted account.

For younger readers

This new rule helps doctors take better care of moms and kids who are feeling sad or worried. Sometimes, regular doctors need advice from special brain doctors (psychiatrists) to help their patients. This bill makes sure there is money to pay for a special phone line where regular doctors can call these experts for help. To pay for this, the companies that pay for doctor visits (insurance companies) will have to pay extra money to the state. This helps make sure moms and kids get the right help when they need it.

Who & Where It Applies

Impacted groups
Health Insurance CompaniesPrimary Care ProvidersPregnant and Postpartum WomenChildren requiring mental health servicesDepartment of Health
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Health Insurers: $30,000,000
Estimated revenue
$19.26

Bill Analysis

Both viewpoints
For Progressives
  • Secures significant, dedicated funding for mental health services specifically targeting vulnerable populations like children and pregnant or postpartum women.
  • Shifts the financial burden of these public health programs onto insurance corporations rather than increasing direct taxes on individual working-class citizens.
  • Strengthens the social safety net by providing primary care doctors with free access to psychiatric expertise, potentially reducing health disparities in underserved communities.
  • Moves the funding into "general revenues" rather than a restricted account, creating a risk that future administrations could divert this money away from healthcare to other priorities.
  • Insurance companies will likely pass the cost of this $30 million assessment down to consumers in the form of higher premiums, which hurts low-income families.
  • Sets a flat funding amount ($30 million) rather than a formula based on actual need, which may not keep up with inflation or the increasing demand for mental health services.
For Conservatives
  • Directs funds into the General Revenue stream rather than a restricted account, allowing for greater legislative oversight and control over state spending.
  • Focuses resources on supporting mothers and children, aligning with traditional family values regarding the care of the next generation.
  • Exempts the program from "indirect cost recovery," ensuring that the money allocated is spent on actual services rather than administrative overhead.
  • Imposes a massive $30 million tax hike on private businesses (insurers), which interferes with the free market and corporate freedom.
  • Expands the size and scope of government by entrenching state-run medical consultation programs rather than letting the private sector handle these needs.
  • Increases the cost of living for residents, as insurance companies will inevitably raise premiums to cover this new government mandate.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 26 additions · 24 deletions

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.

(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, 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; and all as divided by (iv) 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) Beginning calendar year 2026, in addition to the assessment collection pursuant to subsection (a), there shall be an additional amount assessed pursuant to (i) and (ii), to support primary care and other critical healthcare programs, including both the MomsPRN and PediPRN teleconsultation lines, as described in § 23-1-46.1, totaling thirty million dollars ($30,000,000), which shall be deposited as general revenues.

SECTION 2. Section 23-1-46.1 of the General Laws in Chapter 23-1 entitled "Department of Health" is hereby amended to read as follows: 23-1-46.1. Psychiatry resource network account Psychiatry resource network programs. [See Compiler’s Note.]

(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 The department of health shall manage any and all funds available to effectuate coverage for the following services: Existing Rhode Island lines including the PediPRN and MomsPRN teleconsultation information lines together with any additional information line, referral service, or hotline which is are available to support pediatric, primary care, perinatal, and other service providers or residents in the state in providing appropriate and timely mental healthcare and referrals to children, perinatal patients, and mothers with mental health concerns., 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 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:

(1) Projected by the department of health for the services in subsection (a) of this section; plus

(2) A ten percent (10%) contingency for unexpected expenses; and after

(3) Deduction for any projected carryover of excess funds from prior assessments.

(c) 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. (d)(b) The “PRN account program” shall be exempt from the indirect costs recovery provisions of § 35-4-27.

SECTION 3. Chapter 23-13 of the General Laws entitled "Maternal and Child Health Services for Children with Special Health Care Needs" is hereby amended by adding thereto the following section: 23-13-27. Psychiatry resource network programs.

(a) Subject to appropriation, with sources including, but not limited to, § 42-7.4-3, the department shall operate statewide the psychiatry resource network programs: PediPRN and MomsPRN. These statewide psychiatry resource network programs expand Rhode Island's behavioral health and substance use capacity by providing workforce development and psychiatric consultation to primary and specialty care providers, including community-based health professionals.

(b) The “PRN program” shall be exempt from the indirect costs recovery provisions of § 35-4-27.

SECTION 4. This act shall take effect upon passage.