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Bill > HF2543


IA HF2543

IA HF2543
A bill for an act relating to mental health care, including subacute mental health care facility requirements; admission to and discharge from a subacute mental health care facility; employment requirements at a subacute mental health care facility; insurance coverage for subacute mental health care; and the establishment of a psychiatric medical institution for children bed tracking system, and providing penalties and including effective date provisions.(Formerly HF 2220.)


summary

Introduced
02/16/2026
In Committee
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill relates to mental health care. The bill eliminates the requirement that subacute mental health care (SMHC) must be limited to a period of 10 calendar days unless a longer period of time is adopted by the department of health and human services (HHS). The bill requires an SMHC facility to develop a written treatment care plan with a resident within 24 hours of the resident’s admission to the SMHC facility. The bill prohibits a preauthorization requirement for an individual’s admission to an SMHC facility or for the first 15 consecutive calendar days of a resident’s treatment. Starting from the date of a resident’s first day of treatment, on or after a resident’s 45th consecutive day of treatment, a managed care organization (MCO) may review the medical necessity of the resident’s treatment. After the initial review of a resident’s treatment, an MCO may only review the medical necessity of the resident’s treatment a maximum of one time within any consecutive 30-calendar-day period. The bill prohibits an MCO from requiring a resident’s discharge until the mental health professional providing supervision of the resident’s treatment care plan has determined that there are proper supports in place prior to the resident’s discharge to mitigate the risk of the patient committing self-harm or the patient harming other individuals. The bill defines “health carrier” and requires a health carrier to provide coverage for SMHC services provided by an SMHC facility. A health carrier that violates the bill is subject to a civil penalty of up to $1,000 for each violation of the bill, up to an aggregate of $10,000, unless the person knew or reasonably should have known the person was in violation of the bill, in which case the penalty is up to $5,000 for each violation, up to an aggregate of $50,000 in any one six-month period. The bill requires HHS to establish an electronic system to track the availability of beds at each psychiatric medical institution for children. The bill directs HHS and the department of inspections, appeals, and licensing (DIAL) to collaborate to review each department’s rules and eliminate any rule the departments determine impedes the establishment of new SMHC facilities and services; expansion of existing SMHC facilities and services; or ease of access to SMHC facilities and services. The bill directs DIAL to adopt rules to increase the maximum number of beds an SMHC facility may have without the SMHC facility being defined as a state mental health institute, and provide that requirements applicable to an SMHC facility, and SMHC facility employees, are less stringent than comparable requirements that apply to a state mental health institute or a state mental health institute’s employees. The bill allows HHS and DIAL to adopt emergency rules to implement the bill. The bill takes effect upon enactment.

AI Summary

This bill aims to improve mental health care access and services by making several changes to subacute mental health care facilities (SMHC), which provide short-term, intensive mental health treatment. It removes a previous 10-day limit on SMHC stays, requiring facilities to create a treatment plan with residents within 24 hours of admission. The bill also eliminates the need for pre-approval for admission or the first 15 days of treatment, and limits how often managed care organizations (MCOs), which are private companies that manage health insurance benefits, can review the medical necessity of ongoing treatment after 45 days. Furthermore, MCOs cannot force a resident's discharge until a mental health professional confirms appropriate support systems are in place to prevent self-harm or harm to others. The bill also mandates that health carriers, which are insurance providers, must cover SMHC services and establishes penalties for violations, including fines up to $5,000 per violation. To improve access to care for children, the state's Department of Health and Human Services (HHS) will create a system to track available beds in psychiatric medical institutions for children. The bill also directs HHS and the Department of Inspections, Appeals, and Licensing (DIAL) to review and remove regulations that hinder the establishment, expansion, or accessibility of SMHC facilities, and allows DIAL to set rules for SMHC facilities to have more beds without being classified as a state mental health institute, with less stringent requirements for both facilities and their employees compared to state mental health institutes. The bill takes effect immediately upon enactment.

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Health And Human Services (House)

Last Action

Introduced, placed on calendar. H.J. 306. (on 02/16/2026)

bill text


bill summary

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