HF32

Purpose

• To change rules about how much a health plan can charge for children’s mental health services, with the goal of making mental health care more affordable and accessible for kids.

Key Provisions

• Prohibition on copayments: A health plan company may not require a copayment for mental health services received by a child under age 18.
• Exception for HDHPs with HSAs: If the health plan is a high-deductible health plan (HDHP) paired with a health savings account (HSA), that plan must require a copayment for mental health services for a child under 18 at the minimum level necessary to preserve the enrollee’s ability to make tax-exempt contributions and withdrawals from the HSA as allowed under Internal Revenue Code (IRC) section 223.
• Codification: These rules would be added as a new section in Minnesota Statutes, chapter 62Q (specifically 62Q.474, titled “MENTAL HEALTH AND COPAYMENTS FOR CHILDREN”).

Significance and Potential Impact

• Access and affordability: Eliminating copayments for most children’s mental health services could reduce financial barriers and increase access to care for minors.
• Tax and account considerations: For HDHPs with HSAs, a copayment is still required, but only at a level that preserves the ability to use HSA tax-advantaged contributions and withdrawals, aligning with IRS rules.
• Stakeholders affected: health plan issuers, families with children under 18, and individuals enrolled in HDHPs with HSAs.

Relevant Implications to Watch

• Implementation details: How plans determine the “minimum level necessary” for HDHP/HSA copayments to satisfy IRC 223 could require plan-specific administration.
• Coverage scope: The bill’s language focuses on mental health services; it does not specify other behavioral health services or services for adults.

Compliance Considerations

• Plans would need to review and adjust copayment requirements for pediatric mental health services to ensure they comply with the new rule, including any HDHP/HSA-specific provisions.

Relevant Terms - copayment - mental health services - child under 18 - health plan - high-deductible health plan (HDHP) - health savings account (HSA) - Internal Revenue Code (IRC) section 223 - Minnesota Statutes chapter 62Q - 62Q.474 (MENTAL HEALTH AND COPAYMENTS FOR CHILDREN)