Medical Necessity Determination Insurance Coverage
Summary
The act clarifies that the health benefits coverage for the prevention of, screening for, and treatment of behavioral, mental health, and substance use disorders must be no less extensive than the coverage provided for any physical illness. The act requires that every health benefit plan provide coverage for medically necessary treatment of covered behavioral, mental health, and substance use disorder benefits, consistent with specified criteria. The act also specifies criteria to be used for conducting utilization review, service intensity, and the level of care for covered persons. In addition, the act prohibits: A health benefit plan from limiting coverage for chronic behavioral, mental health, or substance use disorders to short-term symptom reduction; and A health insurance carrier from reversing or altering a determination of medical necessity except in the case of fraud. The act requires carriers that provide benefits for mental health conditions or substance use disorders to offer meaningful benefits for mental health conditions and substance use disorders. The act describes how to determine whether the benefits provided are meaningful benefits. The commissioner of insurance is authorized to adopt rules to: Establish carrier utilization review compliance; Specify data testing requirements for plan design and application of parity compliance; Set standard definition for coverage requirements; Establish timelines for carriers to provide comparative analysis information to the division of insurance; and Establish time periods for visits with a provider for treatment of a behavioral, mental health, or substance use disorder after an initial visit with a provider.(Note: This summary applies to this bill as enacted.)
Bill status
signed
all 5 stages cleared
Introduction
Jan 2025
Committee Review
Feb 2025
House Passage
Feb 2025
Senate Passage
Feb 2025
Signed into Law
Mar 2025
Introduced Jan 8, 2025
Signed Mar 20, 2025
Maddy AI version diff · 8 comparisons
What changed between versions
Revised (02/25/2025)
→
PA2 (02/21/2025)
·
2 edits
MINOR
The bill was amended to require health benefit plans to apply specific utilization review criteria for substance use disorder diagnoses and treatment. This change ensures standardized review processes for behavioral health services.
Scope change
The bill now explicitly applies to utilization review of covered services for substance use disorders, in addition to existing behavioral health provisions.
REQUIREMENT
Added requirement for health benefit plans to apply specific criteria from subsection (5.5)(a)(I)(B) when conducting utilization review for substance use disorder diagnosis, prevention, and treatment.
Added provisions regarding utilization review relating to service intensity and level of care placement for patient care.
Floor votes · Senate Feb 26, 2025 · House Feb 10, 2025
How they voted
32–1
Passed · 1 other
Total votes 34
Feb 26, 2025
D
Democratic22
95% Yea
R
Republican12
91% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
15
Key actions
5
Committee
2
Amendments
2
Mar 20, 2025
Signed into law
Governor Signed
executive
Feb 28, 2025
Introduced
House Considered Senate Amendments - Result was to Concur - Repass
lower
Feb 27, 2025
Introduced
House Considered Senate Amendments - Result was to Laid Over Daily
lower
Feb 26, 2025
Upper · Passed
Senate Third Reading Passed - No Amendments
upper
Feb 20, 2025
Upper · Passed
Senate Committee on Health & Human Services Refer Amended - Consent Calendar to Senate Committee of the Whole
upper
Feb 12, 2025
Introduced
Introduced In Senate - Assigned to Health & Human Services
upper
Feb 10, 2025
Lower · Passed
House Third Reading Passed - No Amendments
lower
Jan 29, 2025
Lower · Passed
House Committee on Health & Human Services Refer Amended to House Committee of the Whole
lower
Jan 8, 2025
Introduced
Introduced In House - Assigned to Health & Human Services
lower
4 primary · 52 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Byron Pelton
RRepublican
P
Judy Amabile
DDemocratic
P
Kyle Brown
DDemocratic
P
Lindsay Gilchrist
DDemocratic
Co
Alex Valdez
DDemocratic
Co
Amy Paschal
DDemocratic
Co
Andy Boesenecker
DDemocratic
Co
Bob Marshall
DDemocratic
Co
Brianna Titone
DDemocratic
Co
Cathy Kipp
DDemocratic
Co
Chad Clifford
DDemocratic
Co
Chris Kolker
DDemocratic
Co
Cleave Simpson
RRepublican
Co
Dafna Michaelson Jenet
DDemocratic
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