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S 2562Health Insurance

State Affairs and Government - The Healthcare Services Funding Plan Act

Beginning in 2026, this bill charges health insurers $30 million annually to fund mental health services for mothers and children.

Introduced38 Yea0 Nay0 Not voting
Population
Affected
28
Introduced Feb 13, 2026Committee Senate Health & Human Services

Plain-English Summary

This legislation changes how the state funds and manages mental health consultation services for mothers and children. Starting in 2026, the bill requires health insurance companies to pay a collective assessment of $30 million annually. This money will be deposited into the state's general revenues to support primary care and specific programs called MomsPRN and PediPRN. These programs allow pediatricians and other doctors to consult with psychiatrists regarding mental health treatment for pregnant women, new mothers, and children. The bill also moves the legal framework for these programs under the Maternal and Child Health Services laws.

For younger readers

This law helps doctors take better care of kids and moms who might be feeling very sad or worried. Sometimes, regular doctors need to talk to special brain doctors called psychiatrists to know the best way to help their patients. This law makes sure there is money to pay for a special phone line where regular doctors can call the special doctors for advice. It says that the big companies that pay for doctor visits (insurance companies) have to pay extra money to the state to make sure this help is available.

Who & Where It Applies

Impacted groups
Health Insurance CompaniesPediatriciansPregnant WomenChildrenMental Health Professionals
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Insurers: $30,000,000/yr
Estimated revenue
$19.26

Bill Analysis

Both viewpoints
For Progressives
  • Secures significant funding ($30 million) specifically for maternal and pediatric mental health services, expanding the social safety net for vulnerable populations.
  • Shifts the financial burden of these public health programs onto insurance corporations through a mandatory assessment rather than taxing individuals.
  • Codifies the MomsPRN and PediPRN programs into state law, ensuring that workforce development and psychiatric consultation remain available to support community health.
  • Moves the funding into "general revenues" rather than a restricted receipt account, which risks the money being diverted by future administrations to non-healthcare purposes.
  • Makes the operation of the programs "subject to appropriation," meaning the legislature could theoretically withhold the funds even after collecting the assessment.
  • Insurance companies will likely pass the cost of the $30 million assessment down to consumers through higher premiums, indirectly burdening working-class families.
For Conservatives
  • Supports traditional family structures by providing resources specifically for the health of mothers and children.
  • Focuses on workforce development and consultation for existing doctors rather than creating a new, bloated government agency to deliver care directly.
  • Eliminates a "restricted receipt account," moving funds to general revenue which allows for greater legislative oversight and control over government spending.
  • Imposes a massive $30 million annual assessment on private businesses (insurers), which is effectively a tax increase that interferes with the free market.
  • Expands the size and cost of government by mandating high-dollar funding for specific social programs.
  • Likely results in higher insurance premiums for all residents as corporations pass the regulatory costs onto the consumer.

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.