1 of 1 SENATE DOCKET, NO. 1151 FILED ON: 1/15/2025 SENATE . . . . . . . . . . . . . . No. 835 The Commonwealth of Massachusetts _________________ PRESENTED BY: John C. Velis _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act to further define medical necessity determinations. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :John C. VelisHampden and Hampshire 1 of 14 SENATE DOCKET, NO. 1151 FILED ON: 1/15/2025 SENATE . . . . . . . . . . . . . . No. 835 By Mr. Velis, a petition (accompanied by bill, Senate, No. 835) of John C. Velis relative to health plan coverage for medically necessary mental health crisis stabilization services. Financial Services. [SIMILAR MATTER FILED IN PREVIOUS SESSION SEE HOUSE, NO. 1068 OF 2023-2024.] The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act to further define medical necessity determinations. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Chapter 32A of the General Laws is hereby amended by inserting after 2section 17R the following section:- 3 Section 17S. For the purposes of this section the following terms shall, unless the context 4clearly requires otherwise, have the following meanings: 5 “Mental health acute treatment”, 24-hour medically supervised mental health services 6provided in an inpatient facility, licensed by the department of mental health, that provides 7psychiatric evaluation, management, treatment and discharge planning in a structured treatment 8milieu. 2 of 14 9 “Mental health crisis stabilization services”, 24-hour clinically managed mental health 10diversionary or step-down services for adults or adolescents, as defined by MassHealth, usually 11provided as an alternative to mental health acute treatment or following mental health acute 12treatment, which may include intensive crisis stabilization counseling, outreach to families and 13significant others and aftercare planning. 14 “Community-based acute treatment (CBAT)”, 24-hour clinically managed mental health 15diversionary or step-down services for children and adolescents, as defined by the department of 16early education and care, usually provided as an alternative to mental health acute treatment. 17 “Intensive community-based acute treatment (ICBAT)”, intensive 24-hour clinically 18managed mental health diversionary or step-down services for children and adolescents, as 19defined by the department of early education and care, usually provided as an alternative to 20mental health acute treatment. 21 The commission shall provide to any active or retired employee of the commonwealth 22who is insured under the group insurance commission coverage for medically necessary mental 23health acute treatment and shall not require a preauthorization prior to obtaining treatment. 24Medical necessity shall be determined by the treating clinician in consultation with the patient 25and noted in the patient’s medical record. 26 The commission shall provide to any active or retired employee of the commonwealth 27who is insured under the group insurance commission coverage for medically necessary mental 28health crisis stabilization services for up to 14 days and shall not require preauthorization prior to 29obtaining such services; provided, that the facility shall provide the carrier both notification of 30admission and the initial treatment plan within 48 hours of admission; provided further, that 3 of 14 31utilization review procedures may be initiated on day 7. Medical necessity shall be determined 32by the treating clinician in consultation with the patient and noted in the patient’s medical record. 33 The commission shall provide to any active or retired employee of the commonwealth 34who is insured under the group insurance commission coverage for medically necessary 35community based acute treatment services for up to 21 days; provided, that the facility shall 36provide the carrier both notification of admission and the initial treatment plan within 48 hours 37of admission; provided further, that utilization review procedures may be initiated on day 10. 38Medical necessity shall be determined by the treating clinician in consultation with the patient 39and noted in the patient’s medical record. 40 The commission shall provide to any active or retired employee of the commonwealth 41who is insured under the group insurance commission coverage for medically necessary 42intensive community based acute treatment services for up to 14 days; provided, that the facility 43shall provide the carrier both notification of admission and the initial treatment plan within 48 44hours of admission; provided further, that utilization review procedures may be initiated on day 457. Medical necessity shall be determined by the treating clinician in consultation with the patient 46and noted in the patient’s medical record. 47 SECTION 2. Chapter 118E of the General Laws is hereby amended by inserting after 48section 10N the following section:- 49 Section 10O. For the purposes of this section the following terms shall, unless the context 50clearly requires otherwise, have the following meanings: 51 “Mental health acute treatment”, 24-hour medically supervised mental health services 52provided in an inpatient facility, licensed by the department of mental health, that provides 4 of 14 53psychiatric evaluation, management, treatment and discharge planning in a structured treatment 54milieu. 55 “Mental health crisis stabilization services”, 24-hour clinically managed mental health 56diversionary or step-down services for adults or adolescents, as defined by MassHealth, usually 57provided as an alternative to mental health acute treatment or following mental health acute 58treatment, which may include intensive crisis stabilization counseling, outreach to families and 59significant others and aftercare planning. 60 “Community-based acute treatment (CBAT)”, 24-hour clinically managed mental health 61diversionary or step-down services for children and adolescents, as defined by the department of 62early education and care, usually provided as an alternative to mental health acute treatment. 63 “Intensive community-based acute treatment (ICBAT)”, intensive 24-hour clinically 64managed mental health diversionary or step-down services for children and adolescents, as 65defined by the department of early education and care, usually provided as an alternative to 66mental health acute treatment. 67 The division and its contracted health insurers, health plans, health maintenance 68organizations, behavioral health management firms and third party administrators under contract 69to a Medicaid managed care organization or primary care clinician plan shall cover the cost of 70medically necessary mental health acute treatment and shall not require a preauthorization prior 71to obtaining treatment. Medical necessity shall be determined by the treating clinician in 72consultation with the patient and noted in the patient’s medical record. 73 The division and its contracted health insurers, health plans, health maintenance 74organizations, behavioral health management firms and third party administrators under contract 5 of 14 75to a Medicaid managed care organization or primary care clinician plan shall cover the cost of 76medically necessary mental health crisis stabilization services for up to 14 days and shall not 77require preauthorization prior to obtaining such services; provided, that the facility shall provide 78the carrier both notification of admission and the initial treatment plan within 48 hours of 79admission; provided further, that utilization review procedures may be initiated on day 7. 80Medical necessity shall be determined by the treating clinician in consultation with the patient 81and noted in the patient’s medical record. 82 The division and its contracted health insurers, health plans, health maintenance 83organizations, behavioral health management firms and third party administrators under contract 84to a Medicaid managed care organization or primary care clinician plan shall cover the cost of 85medically necessary community based acute treatment services for up to 21 days; provided, that 86the facility shall provide the carrier both notification of admission and the initial treatment plan 87within 48 hours of admission; provided further, that utilization review procedures may be 88initiated on day 10. Medical necessity shall be determined by the treating clinician in 89consultation with the patient and noted in the patient’s medical record. 90 The division and its contracted health insurers, health plans, health maintenance 91organizations, behavioral health management firms and third party administrators under contract 92to a Medicaid managed care organization or primary care clinician plan shall cover the cost of 93medically necessary intensive community based acute treatment services for up to 14 days; 94provided, that the facility shall provide the carrier both notification of admission and the initial 95treatment plan within 48 hours of admission; provided further, that utilization review procedures 96may be initiated on day 7. Medical necessity shall be determined by the treating clinician in 97consultation with the patient and noted in the patient’s medical record. 6 of 14 98 SECTION 3. Chapter 175 of the General Laws is hereby amended by inserting after 99section 47NN the following section:- 100 Section 47OO. For the purposes of this section the following terms shall, unless the 101context clearly requires otherwise, have the following meanings: 102 “Mental health acute treatment”, 24-hour medically supervised mental health services 103provided in an inpatient facility, licensed by the department of mental health, that provides 104psychiatric evaluation, management, treatment and discharge planning in a structured treatment 105milieu. 106 “Mental health crisis stabilization services”, 24-hour clinically managed mental health 107diversionary or step-down services for adults or adolescents, as defined by MassHealth, usually 108provided as an alternative to mental health acute treatment or following mental health acute 109treatment, which may include intensive crisis stabilization counseling, outreach to families and 110significant others and aftercare planning. 111 “Community-based acute treatment (CBAT)”, 24-hour clinically managed mental health 112diversionary or step-down services for children and adolescents, as defined by the department of 113early education and care, usually provided as an alternative to mental health acute treatment. 114 “Intensive community-based acute treatment (ICBAT)”, intensive 24-hour clinically 115managed mental health diversionary or step-down services for children and adolescents, as 116defined by the department of early education and care, usually provided as an alternative to 117mental health acute treatment. 7 of 14 118 Any policy, contract, agreement, plan or certificate of insurance issued, delivered or 119renewed within the commonwealth, which is considered creditable coverage under section 1 of 120chapter 111M, shall provide coverage for medically necessary mental health acute treatment and 121shall not require a preauthorization prior to obtaining treatment. Medical necessity shall be 122determined by the treating clinician in consultation with the patient and noted in the patient’s 123medical record. 124 Any policy, contract, agreement, plan or certificate of insurance issued, delivered or 125renewed within the commonwealth, which is considered creditable coverage under section 1 of 126chapter 111M, shall provide coverage for medically necessary mental health crisis stabilization 127services for up to 14 days and shall not require preauthorization prior to obtaining such services; 128provided, that the facility shall provide the carrier both notification of admission and the initial 129treatment plan within 48 hours of admission; provided further, that utilization review procedures 130may be initiated on day 7. Medical necessity shall be determined by the treating clinician in 131consultation with the patient and noted in the patient’s medical record. 132 Any policy, contract, agreement, plan or certificate of insurance issued, delivered or 133renewed within the commonwealth, which is considered creditable coverage under section 1 of 134chapter 111M, shall provide coverage for medically necessary community based acute treatment 135services for up to 21 days; provided, that the facility shall provide the carrier both notification of 136admission and the initial treatment plan within 48 hours of admission; provided further, that 137utilization review procedures may be initiated on day 10. Medical necessity shall be determined 138by the treating clinician in consultation with the patient and noted in the patient’s medical record. 8 of 14 139 Any policy, contract, agreement, plan or certificate of insurance issued, delivered or 140renewed within the commonwealth, which is considered creditable coverage under section 1 of 141chapter 111M, shall provide coverage for medically necessary intensive community based acute 142treatment services for up to 14 days; provided, that the facility shall provide the carrier both 143notification of admission and the initial treatment plan within 48 hours of admission; provided 144further, that utilization review procedures may be initiated on day 7. Medical necessity shall be 145determined by the treating clinician in consultation with the patient and noted in the patient’s 146medical record. 147 SECTION 4. Chapter 176A of the General Laws is hereby amended by inserting after 148section 8OO the following section:- 149 Section 8PP. For the purposes of this section the following terms shall, unless the context 150clearly requires otherwise, have the following meanings: 151 “Mental health acute treatment”, 24-hour medically supervised mental health services 152provided in an inpatient facility, licensed by the department of mental health, that provides 153psychiatric evaluation, management, treatment and discharge planning in a structured treatment 154milieu. 155 “Mental health crisis stabilization services”, 24-hour clinically managed mental health 156diversionary or step-down services for adults or adolescents, as defined by MassHealth, usually 157provided as an alternative to mental health acute treatment or following mental health acute 158treatment, which may include intensive crisis stabilization counseling, outreach to families and 159significant others and aftercare planning. 9 of 14 160 “Community-based acute treatment (CBAT)”, 24-hour clinically managed mental health 161diversionary or step-down services for children and adolescents, as defined by the department of 162early education and care, usually provided as an alternative to mental health acute treatment. 163 “Intensive community-based acute treatment (ICBAT)”, intensive 24-hour clinically 164managed mental health diversionary or step-down services for children and adolescents, as 165defined by the department of early education and care, usually provided as an alternative to 166mental health acute treatment. 167 Any contract between a subscriber and the corporation under an individual or group 168hospital service plan which is delivered, issued or renewed within the commonwealth shall 169provide coverage for medically necessary mental health acute treatment and shall not require a 170preauthorization prior to obtaining treatment. Medical necessity shall be determined by the 171treating clinician in consultation with the patient and noted in the patient’s medical record. 172 Any contract between a subscriber and the corporation under an individual or group 173hospital service plan which is delivered, issued or renewed within the commonwealth shall 174provide coverage for medically necessary mental health crisis stabilization services for up to 14 175days and shall not require preauthorization prior to obtaining such services; provided, that the 176facility shall provide the carrier both notification of admission and the initial treatment plan 177within 48 hours of admission; provided further, that utilization review procedures may be 178initiated on day 7. Medical necessity shall be determined by the treating clinician in consultation 179with the patient and noted in the patient’s medical record. 180 Any contract between a subscriber and the corporation under an individual or group 181hospital service plan which is delivered, issued or renewed within the commonwealth shall 10 of 14 182provide coverage for medically necessary community based acute treatment services for up to 21 183days; provided, that the facility shall provide the carrier both notification of admission and the 184initial treatment plan within 48 hours of admission; provided further, that utilization review 185procedures may be initiated on day 10. Medical necessity shall be determined by the treating 186clinician in consultation with the patient and noted in the patient’s medical record. 187 Any contract between a subscriber and the corporation under an individual or group 188hospital service plan which is delivered, issued or renewed within the commonwealth shall 189provide coverage for medically necessary intensive community based acute treatment services 190for up to 14 days; provided, that the facility shall provide the carrier both notification of 191admission and the initial treatment plan within 48 hours of admission; provided further, that 192utilization review procedures may be initiated on day 7. Medical necessity shall be determined 193by the treating clinician in consultation with the patient and noted in the patient’s medical record. 194 SECTION 5. Chapter 176B of the General Laws is hereby amended by inserting after 195section 4OO the following section:- 196 Section 4PP. For the purposes of this section the following terms shall, unless the context 197clearly requires otherwise, have the following meanings: 198 “Mental health acute treatment”, 24-hour medically supervised mental health services 199provided in an inpatient facility, licensed by the department of mental health, that provides 200psychiatric evaluation, management, treatment and discharge planning in a structured treatment 201milieu. 202 “Mental health crisis stabilization services”, 24-hour clinically managed mental health 203diversionary or step-down services for adults or adolescents, as defined by MassHealth, usually 11 of 14 204provided as an alternative to mental health acute treatment or following mental health acute 205treatment, which may include intensive crisis stabilization counseling, outreach to families and 206significant others and aftercare planning. 207 “Community-based acute treatment (CBAT)”, 24-hour clinically managed mental health 208diversionary or step-down services for children and adolescents, as defined by the department of 209early education and care, usually provided as an alternative to mental health acute treatment. 210 “Intensive community-based acute treatment (ICBAT)”, intensive 24-hour clinically 211managed mental health diversionary or step-down services for children and adolescents, as 212defined by the department of early education and care, usually provided as an alternative to 213mental health acute treatment. 214 Any subscription certificate under an individual or group medical service agreement 215delivered, issued or renewed within the commonwealth shall provide coverage for medically 216necessary mental health acute treatment and shall not require a preauthorization prior to 217obtaining treatment. Medical necessity shall be determined by the treating clinician in 218consultation with the patient and noted in the patient’s medical record. 219 Any subscription certificate under an individual or group medical service agreement 220delivered, issued or renewed within the commonwealth shall provide coverage for medically 221necessary mental health crisis stabilization services for up to 14 days and shall not require 222preauthorization prior to obtaining such services; provided, that the facility shall provide the 223carrier both notification of admission and the initial treatment plan within 48 hours of admission; 224provided further, that utilization review procedures may be initiated on day 7. Medical necessity 12 of 14 225shall be determined by the treating clinician in consultation with the patient and noted in the 226patient’s medical record. 227 Any subscription certificate under an individual or group medical service agreement 228delivered, issued or renewed within the commonwealth shall provide coverage for medically 229necessary community based acute treatment services for up to 21 days; provided, that the facility 230shall provide the carrier both notification of admission and the initial treatment plan within 48 231hours of admission; provided further, that utilization review procedures may be initiated on day 23210. Medical necessity shall be determined by the treating clinician in consultation with the 233patient and noted in the patient’s medical record. 234 Any subscription certificate under an individual or group medical service agreement 235delivered, issued or renewed within the commonwealth shall provide coverage for medically 236necessary intensive community based acute treatment services for up to 14 days; provided, that 237the facility shall provide the carrier both notification of admission and the initial treatment plan 238within 48 hours of admission; provided further, that utilization review procedures may be 239initiated on day 7. Medical necessity shall be determined by the treating clinician in consultation 240with the patient and noted in the patient’s medical record. 241 SECTION 6. Chapter 176G of the General Laws is hereby amended by inserting after 242section 4GG the following section:- 243 Section 4HH. For the purposes of this section the following terms shall, unless the 244context clearly requires otherwise, have the following meanings: 245 “Mental health acute treatment”, 24-hour medically supervised mental health services 246provided in an inpatient facility, licensed by the department of mental health, that provides 13 of 14 247psychiatric evaluation, management, treatment and discharge planning in a structured treatment 248milieu. 249 “Mental health crisis stabilization services”, 24-hour clinically managed mental health 250diversionary or step-down services for adults or adolescents, as defined by MassHealth, usually 251provided as an alternative to mental health acute treatment or following mental health acute 252treatment, which may include intensive crisis stabilization counseling, outreach to families and 253significant others and aftercare planning. 254 “Community-based acute treatment (CBAT)”, 24-hour clinically managed mental health 255diversionary or step-down services for children and adolescents, as defined by the department of 256early education and care, usually provided as an alternative to mental health acute treatment. 257 “Intensive community-based acute treatment (ICBAT)”, intensive 24-hour clinically 258managed mental health diversionary or step-down services for children and adolescents, as 259defined by the department of early education and care, usually provided as an alternative to 260mental health acute treatment. 261 Any individual or group health maintenance contract that is issued or renewed shall 262provide coverage for medically necessary mental health acute treatment and shall not require a 263preauthorization prior to obtaining treatment. Medical necessity shall be determined by the 264treating clinician in consultation with the patient and noted in the patient’s medical record. 265 Any individual or group health maintenance contract that is issued or renewed shall 266provide coverage for medically necessary mental health crisis stabilization services for up to 14 267days and shall not require preauthorization prior to obtaining such services; provided, that the 268facility shall provide the carrier both notification of admission and the initial treatment plan 14 of 14 269within 48 hours of admission; provided further, that utilization review procedures may be 270initiated on day 7. Medical necessity shall be determined by the treating clinician in consultation 271with the patient and noted in the patient’s medical record. 272 Any individual or group health maintenance contract that is issued or renewed shall 273provide coverage for medically necessary community based acute treatment services for up to 21 274days; provided, that the facility shall provide the carrier both notification of admission and the 275initial treatment plan within 48 hours of admission; provided further, that utilization review 276procedures may be initiated on day 10. Medical necessity shall be determined by the treating 277clinician in consultation with the patient and noted in the patient’s medical record. 278 Any individual or group health maintenance contract that is issued or renewed shall 279provide coverage for medically necessary intensive community based acute treatment services 280for up to 14 days; provided, that the facility shall provide the carrier both notification of 281admission and the initial treatment plan within 48 hours of admission; provided further, that 282utilization review procedures may be initiated on day 7. Medical necessity shall be determined 283by the treating clinician in consultation with the patient and noted in the patient’s medical record.