LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6283 NOTE PREPARED: Nov 19, 2024
BILL NUMBER: HB 1298 BILL AMENDED:
SUBJECT: Contraceptive Coverage.
FIRST AUTHOR: Rep. Errington BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill requires a state employee health plan, a policy of accident and sickness
insurance, and a health maintenance organization contract to provide coverage, without cost sharing, for:
(1) contraceptive products and services;
(2) counseling and screening for certain sexually transmitted infections; and
(3) pre-exposure prophylaxis, post-exposure prophylaxis, and human papillomavirus vaccination.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill requires the state employee health plan (SEHP) to provide
coverage of contraceptive products and other services without cost-sharing, which will result in an
indeterminate, but likely minimal, increase in expenditures for the state paying the members’ share of costs.
According to the State Personnel Department, the majority of contraceptive prescriptions fall within the ACA
preventative drug list and require no cost sharing. However, there are some contraceptives which are not
covered, and in 2023, the state paid approximately $1 M for contraceptives with the total cost sharing for
members totaling about $4,000.
The SEHP covers STI screenings as part of its preventative services. However, if these screenings are
performed as diagnostic care, members are responsible for 100% of the costs until they meet their deductible,
after which they pay co-insurance until they reach their out-of-pocket maximum. Since members bear most
of the costs for screenings performed as diagnostic care, and the variety of screening services can vary, the
additional amount the state would cover under the bill is uncertain.
The SEHP fully covers pre-exposure prophylaxis (PrEP) under the ACA drug list when it is used as a
preventative medicine. However, the SEHP does not cover post-exposure prophylaxis (PEP) in any capacity.
Members are currently subject to their deductible, co-insurance, and out-of-pocket maximum when paying
for PEP. In 2023, employees paid approximately $16,000 for PEP.
The human papillomavirus vaccination is fully covered by the SEHP.
HB 1298 1 Explanation of State Revenues:
Explanation of Local Expenditures: Local entities providing health insurance through the state health plan,
a policy of accident and sickness, or a health maintenance organization may have increased costs to cover
member cost share of these products and services.
Explanation of Local Revenues:
State Agencies Affected: All.
Local Agencies Affected: Local entities providing health care insurance.
Information Sources: Susan Barnhart and Christy Tittle, State Personnel Department;
https://cms2.revize.com/revize/renvillemn/Staff%20Page/Blue%20Cross%20Blue%20Shield%20ACA%
20Drug%20List.pdf;
https://www.aetna.com/content/dam/aetna/pdfs/aetnacom/individuals-families-health-insurance/documen
t-library/pharmacy/2024-hcr-preventive-drug-list.pdf;
https://www.kff.org/other/state-indicator/state-requirements-for-insurance-coverage-of-contraceptives/?c
urrentTimeframe=0&sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D.
Fiscal Analyst: Jason Barrett, 317-232-9809.
HB 1298 2