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S 2877Health Insurance

Insurance - Accident and Sickness Insurance Policies

This bill caps the cost of insulin supplies and glucose monitors at $25 per month for insured patients.

Introduced34 Yea0 Nay4 Not voting
Population
Affected
8
Introduced Mar 4, 2026Committee Senate Health & Human Services

Plain-English Summary

This legislation mandates that health insurance plans in Rhode Island, including those for state employees, cap the out-of-pocket costs for specific diabetes supplies. Starting January 1, 2027, patients will not have to pay more than $25 for a 30-day supply of equipment used for insulin administration and glucose monitoring. Additionally, these supplies will largely be exempt from annual deductibles, meaning insurance coverage kicks in immediately, provided this does not conflict with federal laws regarding Health Savings Accounts.

For younger readers

This new rule helps people who have diabetes, a sickness where the body cannot handle sugar properly. People with diabetes need special supplies, like needles for medicine and tools to test their blood, which can be very expensive. Starting in 2027, this law says that insurance companies cannot make people pay more than $25 a month for these important tools. This will help make sure that families can afford the things they need to stay healthy without spending too much money.

Who & Where It Applies

Impacted groups
Diabetic PatientsHealth Insurance CompaniesState EmployeesEmployers offering health plansPhysicians
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Significantly reduces the financial burden on low-income individuals suffering from chronic illness, ensuring that life-saving medical supplies are affordable and accessible regardless of economic status.
  • Promotes health equity by removing cost barriers to preventative care, potentially reducing the long-term health disparities often found in marginalized communities that suffer from higher rates of diabetes.
  • Strengthens the social safety net by mandating that private corporations prioritize patient health over maximum profit margins regarding essential medical equipment.
  • Maintains the private insurance infrastructure rather than moving toward a universal single-payer system, leaving coverage tied to employment and private policies.
  • Includes a "loophole" regarding Health Savings Accounts (HSAs) where federal law may still require patients to pay high deductibles before the price cap kicks in, potentially leaving some without immediate relief.
  • Does not address the underlying high market prices set by manufacturers, only capping the patient's co-pay, which could lead insurance companies to raise premiums broadly to cover the difference.
For Conservatives
  • Includes specific language to protect the tax-advantaged status of Health Savings Accounts (HSAs), ensuring that the state law does not conflict with federal tax incentives often favored by conservatives.
  • May increase workforce productivity and reduce long-term disability claims by ensuring employees can affordably manage their condition and remain active contributors to the economy.
  • Encourages personal responsibility in health management by making the tools for self-care more accessible, potentially reducing the burden on emergency services and catastrophic care costs.
  • Imposes strict government price controls on private businesses, interfering with the free market and the ability of insurance companies to set their own contract terms.
  • Likely results in cost-shifting, where insurance companies raise premiums for all policyholders to subsidize the capped costs for a specific group, effectively acting as a hidden tax.
  • Expands government mandates on the state employee health plan, which will likely increase the cost of government and the burden on taxpayers to fund public employee benefits.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 52 additions

SECTION 1. Section 27-18-38 of the General Laws in Chapter 27-18 entitled "Accident and Sickness Insurance Policies" is hereby amended to read as follows: 27-18-38. Diabetes treatment.

(a) Every individual or group health insurance contract, plan, or policy delivered, issued for delivery, or renewed in this state that provides medical coverage that includes coverage for physician services in a physician’s office, and every policy that provides major medical or similar comprehensive-type coverage, except for supplemental policies that only provide coverage for specified diseases and other supplemental policies, shall include coverage for the following equipment and supplies for the treatment of insulin treated diabetes, non-insulin treated diabetes, and gestational diabetes, if medically appropriate and prescribed by a physician: blood glucose monitors and blood glucose monitors for the legally blind, test strips for glucose monitors and/or visual reading, insulin, injection aids, cartridges for the legally blind, syringes, insulin pumps and appurtenances to the pumps, insulin infusion devices, and oral agents for controlling blood sugar and therapeutic/molded shoes for the prevention of amputation.

(b) Upon the approval of new or improved diabetes equipment and supplies by the Food and Drug Administration, all policies governed by this section shall guarantee coverage of new diabetes equipment and supplies when medically appropriate and prescribed by a physician. These policies shall also include coverage, when medically necessary, for diabetes self-management education to ensure that persons with diabetes are instructed in the self-management and treatment of their diabetes, including information on the nutritional management of diabetes. The coverage for self-management education and education relating to medical nutrition therapy shall be limited to medically necessary visits upon the diagnosis of diabetes, where a physician diagnoses a significant change in the patient’s symptoms or conditions that necessitates changes in a patient’s self-management, or where reeducation or refresher training is necessary. This education, when medically necessary and prescribed by a physician, may be provided only by the physician or, upon the physician’s referral to an appropriately licensed and certified healthcare provider and may be conducted in group settings. Coverage for self-management education and education relating to medical nutrition therapy shall also include home visits when medically necessary.

(c) Benefit plans offered by an insurer may impose copayment and/or deductibles for the benefits mandated by this chapter; however, in no instance shall the copayment or deductible amount be greater than the copayment or deductible amount imposed for other supplies, equipment, or physician office visits. Benefits for services under this section shall be reimbursed in accordance with the respective principles and mechanisms of reimbursement for each insurer, hospital, or medical service corporation, or health maintenance organization.

(d) Commencing January 1, 2027, coverage for equipment and supplies for insulin administration and glucose monitoring shall have a cap on the amount that a covered person is required to pay for such equipment and supplies at no more than twenty-five dollars ($25.00) per a supply lasting thirty (30) days, or per item when an item is intended to be used for longer than thirty

(30) days. Coverage for such equipment and supplies shall not be subject to any annual deductible. If the application of the cap to a specific item of equipment or supply before a covered person has met their plan's deductible would result in health savings account ineligibility under 26 U.S.C. § 223, then the cap would only apply to that specific item of equipment or supply after the covered person has met their plan's deductible.

SECTION 2. Section 27-19-35 of the General Laws in Chapter 27-19 entitled "Nonprofit Hospital Service Corporations" is hereby amended to read as follows: 27-19-35. Diabetes treatment.

(a) Every individual or group health insurance contract, plan, or policy delivered, issued for delivery, or renewed in this state that provides medical coverage that includes coverage for physician services in a physician’s office, and every policy that provides major medical or similar comprehensive-type coverage shall include coverage for the following equipment and supplies for the treatment of insulin treated diabetes, non-insulin treated diabetes, and gestational diabetes when medically appropriate and prescribed by a physician: blood glucose monitors and blood glucose monitors for the legally blind, test strips for glucose monitors and/or visual reading, insulin, injection aids, cartridges for the legally blind, syringes, insulin pumps and appurtenances to the pumps, insulin infusion devices, and oral agents for controlling blood sugar and therapeutic/molded shoes for the prevention of amputation. Upon the approval of new or improved diabetes equipment and supplies by the Food and Drug Administration, all policies governed by this chapter shall guarantee coverage of new diabetes equipment and supplies when medically appropriate and prescribed by a physician. The policies shall also include coverage, when medically necessary, for diabetes self-management education to ensure that persons with diabetes are instructed in the self- management and treatment of their diabetes, including information on the nutritional management of diabetes. The coverage for self-management education and education relating to medical nutrition therapy shall be limited to medically necessary visits upon the diagnosis of diabetes, where a physician diagnoses a significant change in the patient’s symptoms or conditions that necessitates changes in a patient’s self-management, or where reeducation or refresher training is necessary. This education, when medically necessary and prescribed by a physician, may be provided only by the physician or upon his or her referral by an appropriately licensed and certified healthcare provider and may be conducted in group settings. Coverage for self-management education and education relating to medical nutrition therapy shall also include home visits when medically necessary.

(b) Benefit plans offered by a hospital service corporation may impose copayment or deductibles, or both, for the benefits mandated by this chapter, however, in no instance shall the copayment or deductible amount be greater than the copayment or deductible amount imposed for other supplies, equipment, or physician office visits. Benefits for services under this chapter shall be reimbursed in accordance with the respective principles and mechanisms of reimbursement for each insurer, hospital, or medical service corporation, or health maintenance organization.

(c) Commencing January 1, 2027, coverage for equipment and supplies for insulin administration and glucose monitoring shall have a cap on the amount that a covered person is required to pay for such equipment and supplies at no more than twenty-five dollars ($25.00) per a supply lasting thirty (30) days, or per item when an item is intended to be used for longer than thirty

(30) days. Coverage for such equipment and supplies shall not be subject to any annual deductible. If the application of the cap to a specific item of equipment or supply before a covered person has met their plan's deductible would result in health savings account ineligibility under 26 U.S.C. § 223, then the cap would only apply to that specific item of equipment or supply after the covered person has met their plan's deductible.

SECTION 3. Section 27-20-30 of the General Laws in Chapter 27-20 entitled "Nonprofit Medical Service Corporations" is hereby amended to read as follows: 27-20-30. Diabetes treatment.

(a) Every individual or group health insurance contract, plan, or policy delivered, issued for delivery, or renewed in this state that provides medical coverage that includes coverage for physician services in a physician’s office, and every policy that provides major medical or similar comprehensive-type coverage, shall include coverage for the following equipment and supplies for the treatment of insulin treated diabetes, non-insulin treated diabetes, and gestational diabetes when medically appropriate and prescribed by a physician: blood glucose monitors and blood glucose monitors for the legally blind; test strips for glucose monitors and/or visual reading, insulin, injection aids, cartridges for the legally blind, syringes, insulin pumps, and appurtenances to the pumps, insulin infusion devices, and oral agents for controlling blood sugar and therapeutic/molded shoes for the prevention of amputation. Upon the approval of new or improved diabetes equipment and supplies by the Food and Drug Administration, all policies governed by this chapter shall guarantee coverage of new diabetes equipment and supplies when medically appropriate and prescribed by a physician. These policies shall also include coverage, when medically necessary, for diabetes self-management education to ensure that persons with diabetes are instructed in the self-management and treatment of their diabetes, including information on the nutritional management of diabetes. The coverage for self-management education and education relating to medical nutrition therapy shall be limited to medically necessary visits upon the diagnosis of diabetes, where a physician diagnoses a significant change in the patient’s symptoms or conditions that necessitates changes in a patient’s self-management, or where reeducation or refresher training is necessary. This education, when medically necessary and prescribed by a physician, may be provided only by the physician or, upon his or her referral, to an appropriately licensed and certified healthcare provider, and may be conducted in group settings. Coverage for self-management education and education relating to medical nutrition therapy shall also include home visits when medically necessary.

(b) Benefit plans offered by a medical service corporation may impose copayment or deductibles or both for the benefits mandated by this chapter, however, in no instance shall the copayment or deductible amount be greater than the copayment or deductible amount imposed for other supplies, equipment, or physician office visits. Benefits for services under this chapter shall be reimbursed in accordance with the respective principles and mechanisms of reimbursement for each insurer, hospital, or medical service corporation, or health maintenance organization.

(c) Commencing January 1, 2027, coverage for equipment and supplies for insulin administration and glucose monitoring shall have a cap on the amount that a covered person is required to pay for such equipment and supplies at no more than twenty-five dollars ($25.00) per a supply lasting thirty (30) days, or per item when an item is intended to be used for longer than thirty

(30) days. Coverage for such equipment and supplies shall not be subject to any annual deductible. If the application of the cap to a specific item of equipment or supply before a covered person has met their plan's deductible would result in health savings account ineligibility under 26 U.S.C. § 223, then the cap would only apply to that specific item of equipment or supply after the covered person has met their plan's deductible.

SECTION 4. Section 27-41-44 of the General Laws in Chapter 27-41 entitled "Health Maintenance Organizations" is hereby amended to read as follows: 27-41-44. Diabetes treatment.

(a) Every individual or group health insurance contract, plan, or policy delivered, issued for delivery, or renewed in this state that provides medical coverage that includes coverage for physician services in a physician’s office and every policy that provides major medical or similar comprehensive-type coverage shall include coverage for the following equipment and supplies for the treatment of insulin treated diabetes, non-insulin treated diabetes, and gestational diabetes when medically appropriate and prescribed by a physician: blood glucose monitors and blood glucose monitors for the legally blind, test strips for glucose monitors and visual reading, insulin, injection aids, cartridges for the legally blind, syringes, insulin pumps and appurtenances to them, insulin infusion devices, oral agents for controlling blood sugar, and therapeutic/molded shoes for the prevention of amputation. Upon the approval of new or improved diabetes equipment and supplies by the Food and Drug Administration, all policies governed by this chapter shall guarantee coverage of this new diabetes equipment and supplies when medically appropriate and prescribed by a physician. These policies shall also include coverage, when medically necessary, for diabetes self-management education to ensure that persons with diabetes are instructed in the self- management and treatment of their diabetes, including information on the nutritional management of diabetes. This coverage for self-management education and education relating to medical nutrition therapy shall be limited to medically necessary visits upon the diagnosis of diabetes, where a physician diagnoses a significant change in the patient’s symptoms or conditions that necessitates changes in a patient’s self-management, or where reeducation or refresher training is necessary. This education, when medically necessary and prescribed by a physician, may be provided only by the physician or, upon his or her referral to an appropriately licensed and certified healthcare provider and may be conducted in group settings. Coverage for self-management education and education relating to medical nutrition therapy shall also include home visits when medically necessary.

(b) Benefit plans offered by a health maintenance organization may impose copayment or deductibles, or both, for the benefits mandated by this chapter. However, in no instance shall the copayment or deductible amount be greater than the copayment or deductible amount imposed for other supplies, equipment, or physician office visits. Benefits for services under this chapter shall be reimbursed in accordance with the respective principles and mechanisms of reimbursement for each insurer, hospital, or medical service corporation, or health maintenance organization.

(c) Commencing January 1, 2027, coverage for equipment and supplies for insulin administration and glucose monitoring shall have a cap on the amount that a covered person is required to pay for such equipment and supplies at no more than twenty-five dollars ($25.00) per a supply lasting thirty (30) days, or per item when an item is intended to be used for longer than thirty

(30) days. Coverage for such equipment and supplies shall not be subject to any annual deductible. If the application of the cap to a specific item of equipment or supply before a covered person has met their plan's deductible would result in health savings account ineligibility under 26 U.S.C. § 223, then the cap would only apply to that specific item of equipment or supply after the covered person has met their plan's deductible.

SECTION 5. Chapter 36-12 of the General Laws entitled "Insurance Benefits" is hereby amended by adding thereto the following section: 36-12-2.6. Health insurance benefits - Diabetes treatment. Commencing on and after January 1, 2027, when the health insurance plan for employees of the State of Rhode Island is purchased or renewed by the director of administration pursuant to § 36-12-6, the plan shall provide for the coverage of equipment and supplies for insulin administration and glucose monitoring, and shall have a cap on the amount that a covered person is required to pay for such equipment and supplies at no more than twenty-five dollars ($25.00) per a supply lasting thirty (30) days, or per item when an item is intended to be used for longer than thirty (30) days. Coverage for such equipment and supplies shall not be subject to any annual deductible. If the application of the cap to a specific item of equipment or supply before a covered person has met their plan's deductible would result in health savings account ineligibility under 26 U.S.C. § 223, then the cap would only apply to that specific item of equipment or supply after the covered person has met their plan's deductible.

SECTION 6. This act shall take effect on January 1, 2027.