Committee sends children’s behavioral-health funding bill to interim study after dispute over insurer assessment

The Consumer Protection Committee voted to send Senate Bill 498 to an interim study after a contentious debate over an amendment that would create a system of assessments on insurers to fund pediatric behavioral-health coordination and early intervention services.

Representative Miles, who introduced the updated amendment the committee received on Friday, said the changes “preserve that mission while adding important accountability and fiscal safeguards.” She told the committee the amendment narrows who is assessed, “prevents duplicate funding obligations,” and creates exemptions for plans that already provide comprehensive behavioral-health coverage.

Representative Spear pressed the opposite view, telling colleagues the measure amounts to a tax and raises legal risks. “The assessment flat out is a tax,” Spear said, arguing that the bill as written could run afoul of ERISA and invite litigation that would exclude large ERISA plans and leave a smaller employer pool to carry costs. She also criticized the bill’s board powers and lack of transparency into how funds would be spent.

Representative Theresa, one of the measure’s proponents, said an Anthem communication indicated premiums would rise by about $1.25 per month while the change could save “millions of dollars” for taxpayers. Miles and other supporters argued the amendment adds actuarial, operational and oversight safeguards — including reserve caps, refund mechanisms and insurance-department review — designed to protect market stability and limit premium volatility.

The committee’s chair advocated for an interim study to gather more concrete billing and cost data. The motion to refer SB 498 to interim study was moved by the chair and seconded by Representative Burrows; the roll call recorded 14 votes in favor and 4 opposed (Representatives Miles, Jared Sullivan, Trossia and Brian Sullivan voted no). The committee also announced a planned minority report that would seek to “pass with amendment.”

The debate focused on three practical questions the committee said it wants answered in study: exactly which services insurers already cover and which would trigger an assessment, the expected universe of children who would use the services, and the fiscal effect on premiums if ERISA plans decline to participate. Committee members said they expect to collect billing evidence and actuarial detail during the interim study before deciding whether to advance the amended bill further.

The committee did not adopt SB 498 as amended; instead it directed further study. A minority report to pass the bill with the amendment was filed for committee members who opposed the interim-study referral.