Introduced Version
HOUSE BILL No. 1129
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 27-2-30.
Synopsis: Mental health coverage by third party. Provides that if an
insurer contracts with a third party for coverage of services related to
the treatment of a mental illness or substance abuse, the insurer and
third party shall deem a provider providing mental illness or substance
abuse services as: (1) an in network provider for purposes of
calculating cost sharing for a covered individual if the provider is in
network for medical or surgical services under the health plan; and (2)
credentialed for mental illness or substance abuse services if the
provider is credentialed for medical or surgical services under the
health plan.
Effective: July 1, 2025.
Ledbetter
January 8, 2025, read first time and referred to Committee on Insurance.
2025 IN 1129—LS 6965/DI 141 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1129
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 27-2-30 IS ADDED TO THE INDIANA CODE AS
2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2025]:
4 Chapter 30. Coverage of Mental Illness and Substance Abuse
5 Services by Third Party
6 Sec. 1. As used in this chapter, "covered individual" means an
7 individual who is entitled to coverage under a health plan.
8 Sec. 2. As used in this chapter, "health plan" means a plan
9 through which coverage is provided for health care services
10 through insurance, prepayment, reimbursement, or otherwise. The
11 term includes the following:
12 (1) A policy of accident and sickness insurance as defined in
13 IC 27-8-5-1, but not including any insurance, plan, or policy
14 set forth in IC 27-8-5-2.5(a).
15 (2) An individual contract (as defined in IC 27-13-1-21) or a
16 group contract (as defined in IC 27-13-1-16).
17 (3) A state employee health plan.
2025 IN 1129—LS 6965/DI 141 2
1 (4) A self-funded health benefit plan, including a self-funded
2 health benefit plan that is subject to the federal Employee
3 Retirement Income Security Act (ERISA) of 1974 (29 U.S.C.
4 1001 et seq.).
5 Sec. 3. As used in this chapter, "insurer" means the following:
6 (1) An insurer that issues a policy of accident and sickness
7 insurance as defined in IC 27-8-5-1, but not including any
8 insurance, plan, or policy set forth in IC 27-8-5-2.5(a).
9 (2) A health maintenance organization (as defined in
10 IC 27-13-1-19) that enters into an individual contract (as
11 defined in IC 27-13-1-21) or a group contract (as defined in
12 IC 27-13-1-16).
13 (3) A state employee health plan.
14 (4) An individual or entity that offers health insurance
15 coverage to its employees or members through a self-funded
16 health benefit plan, including a self-funded health benefit plan
17 that is subject to the federal Employee Retirement Income
18 Security Act (ERISA) of 1974 (29 U.S.C. 1001 et seq.).
19 Sec. 4. As used in this chapter, "provider" means an individual
20 or entity licensed or legally authorized to provide health care
21 services.
22 Sec. 5. As used in this chapter, "state employee health plan"
23 means either of the following:
24 (1) A self-insurance program established under IC 5-10-8-7(b)
25 to provide group coverage.
26 (2) A prepaid health care delivery plan through which health
27 services are provided under IC 5-10-8-7(c).
28 Sec. 6. As used in this chapter, "treatment of a mental illness or
29 substance abuse" means:
30 (1) treatment for a mental illness, as defined in
31 IC 12-7-2-130(1); and
32 (2) treatment for drug abuse or alcohol abuse.
33 Sec. 7. (a) This section applies to a contract that is entered into,
34 issued, amended, or renewed after June 30, 2025.
35 (b) If an insurer contracts with a third party for coverage of
36 services related to the treatment of a mental illness or substance
37 abuse, the insurer and third party shall deem a provider providing
38 mental illness or substance abuse services as:
39 (1) an in network provider for purposes of calculating cost
40 sharing for a covered individual if the provider is in network
41 for medical or surgical services under the health plan; and
42 (2) credentialed for mental illness or substance abuse services
2025 IN 1129—LS 6965/DI 141 3
1 if the provider is credentialed for medical or surgical services
2 under the health plan.
2025 IN 1129—LS 6965/DI 141