2025 -- H 5461
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LC001590
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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
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A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE HEALTHCARE SERVICES
FUNDING PLAN ACT
Introduced By: Representatives Shallcross Smith, Fogarty, Casimiro, Tanzi, Ackerman,
Kislak, Cotter, DeSimone, Morales, and Noret
Date Introduced: February 12, 2025
Referred To: House Finance
It is enacted by the General Assembly as follows:
SECTION 1. Section 42-7.4-3 of the General Laws in Chapter 42-7.4 entitled "The 1
Healthcare Services Funding Plan Act" is hereby amended to read as follows: 2
42-7.4-3. Imposition of healthcare services funding contribution. [As enacted in 2014.] 3
(a) Each insurer is required to pay the healthcare services funding contribution for each 4
contribution enrollee of the insurer at the time the contribution is calculated and paid, at the rate set 5
forth in this section. 6
(1) Beginning January 1, 2016 July 1, 2025, the secretary shall set the healthcare services 7
funding contribution each fiscal year in an amount equal to: (i) The child immunization funding 8
requirement described in § 23-1-46; plus (ii) The adult immunization funding requirement 9
described in § 23-1-46; plus (iii) The children’s health services funding requirement described in § 10
42-12-29; plus (iv) The psychiatry resource network funding requirement described in § 23-1-46.2 11
and all as divided by; (iv)(v) The number of contribution enrollees of all insurers. 12
(2) The contribution set forth herein shall be in addition to any other fees or assessments 13
upon the insurer allowable by law. 14
(b) The contribution shall be paid by the insurer; provided, however, a person providing 15
health benefits coverage on a self-insurance basis that uses the services of a third-party 16
administrator shall not be required to make a contribution for a contribution enrollee where the 17
contribution on that enrollee has been or will be made by the third-party administrator. 18
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(c) The secretary shall create a process to facilitate the transition to the healthcare services 1
funding contribution method that: (i) assures adequate funding beginning July 1, 2016, (ii) reflects 2
that funding via the healthcare services funding contribution method initially will be for only a 3
portion of the state’s fiscal year, and (iii) avoids duplicate liability for any insurer that made a 4
payment under the premium assessment method in effect prior to January 1, 2016, for a period for 5
which it would also be liable for a contribution under the healthcare services funding contribution 6
method as described in this chapter. 7
SECTION 2. Chapter 23-1 of the General Laws entitled "Department of Health" is hereby 8
amended by adding thereto the following section: 9
23-1-46.2. Psychiatry resource network account. 10
(a) There is created within the general fund a restricted receipt account to be known as the 11
"PRN account." All money in the account shall be utilized by the department of health to effectuate 12
coverage for the following services: Existing Rhode Island lines including the PediPRN and 13
MomsPRN information lines together with any additional information line, referral service, or 14
hotline which is available to providers or residents in the state, and which is funded pursuant to 15
regulation adopted by the director of the department of health. Amounts collected pursuant to § 42-16
7.4-3(a)(1)(iv) shall be collected by the department of health and deposited in the "PRN account." 17
The funds shall be used solely for the purposes of the "PRN account," and no other. 18
(b) Each year's psychiatry resource network funding requirement in § 42-7.4-3(a)(1)(iv) 19
shall be the amount projected by the department of health in subsection (a) of this section and 20
approved by the PRN advisory committee. 21
(c) The department of health shall establish a PRN advisory committee, as determined by 22
the director of the department of health, that may include representatives from the department of 23
health; the office of the health insurance commissioner; the executive office of health and human 24
services; the department of behavioral healthcare, developmental disabilities, and hospitals; 25
insurers; and other representatives as indicated. 26
(d) The department of health shall submit to the general assembly an annual report on the 27
program and costs related to the program, on or before February 1 of each year. The department 28
shall make available to each insurer required to make a contribution pursuant to § 42-7.4-3, upon 29
its request, detailed information regarding the programs described in subsection (a) of this section 30
and the costs related to those programs 31
(e) The "PRN account" shall be exempt from the indirect costs recovery provisions of § 32
35-4-27. 33
SECTION 3. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds" 34
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is hereby amended to read as follows: 1
35-4-27. Indirect cost recoveries on restricted receipt accounts. [Effective January 1, 2
2025.] 3
Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all 4
restricted receipt accounts, to be recorded as general revenues in the general fund. However, there 5
shall be no transfer from cash receipts with restrictions received exclusively: (1) From contributions 6
from nonprofit charitable organizations; (2) From the assessment of indirect cost-recovery rates on 7
federal grant funds; or (3) Through transfers from state agencies to the department of administration 8
for the payment of debt service. These indirect cost recoveries shall be applied to all accounts, 9
unless prohibited by federal law or regulation, court order, or court settlement. The following 10
restricted receipt accounts shall not be subject to the provisions of this section: 11
Executive Office of Health and Human Services 12
Organ Transplant Fund 13
HIV Care Grant Drug Rebates 14
Health System Transformation Project 15
Rhode Island Statewide Opioid Abatement Account 16
HCBS Support-ARPA 17
HCBS Admin Support-ARPA 18
Department of Human Services 19
Veterans’ home — Restricted account 20
Veterans’ home — Resident benefits 21
Pharmaceutical Rebates Account 22
Demand Side Management Grants 23
Veteran’s Cemetery Memorial Fund 24
Donations — New Veterans’ Home Construction 25
Commodity Supplemental Food Program-Claims 26
Department of Health 27
Pandemic medications and equipment account 28
Miscellaneous Donations/Grants from Non-Profits 29
State Loan Repayment Match 30
Healthcare Information Technology 31
Healthcare services funding accounts for the psychiatry resource network (PRN) 32
Department of Behavioral Healthcare, Developmental Disabilities and Hospitals 33
Eleanor Slater non-Medicaid third-party payor account 34
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Hospital Medicare Part D Receipts 1
RICLAS Group Home Operations 2
Group Home Facility Improvement Fund 3
Commission on the Deaf and Hard of Hearing 4
Emergency and public communication access account 5
Department of Environmental Management 6
National heritage revolving fund 7
Environmental response fund II 8
Underground storage tanks registration fees 9
De Coppet Estate Fund 10
Rhode Island Historical Preservation and Heritage Commission 11
Historic preservation revolving loan fund 12
Historic Preservation loan fund — Interest revenue 13
Department of Public Safety 14
E-911 Uniform Emergency Telephone System 15
Forfeited property — Retained 16
Forfeitures — Federal 17
Forfeited property — Gambling 18
Donation — Polygraph and Law Enforcement Training 19
Rhode Island State Firefighter’s League Training Account 20
Fire Academy Training Fees Account 21
Attorney General 22
Forfeiture of property 23
Federal forfeitures 24
Attorney General multi-state account 25
Forfeited property — Gambling 26
Department of Administration 27
OER Reconciliation Funding 28
Health Insurance Market Integrity Fund 29
RI Health Benefits Exchange 30
Information Technology restricted receipt account 31
Restore and replacement — Insurance coverage 32
Convention Center Authority rental payments 33
Investment Receipts — TANS 34
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OPEB System Restricted Receipt Account 1
Car Rental Tax/Surcharge-Warwick Share 2
Grants Management Administration 3
RGGI-Executive Climate Change Coordinating Council Projects 4
Electric Vehicle Charging Stations Operating and Maintenance Account 5
Department of Housing 6
Housing Resources and Homelessness Restricted Receipt Account 7
Housing Production Fund 8
Low-Income Housing Tax Credit Fund 9
Department of Revenue 10
DMV Modernization Project 11
Jobs Tax Credit Redemption Fund 12
Legislature 13
Audit of federal assisted programs 14
Department of Children, Youth and Families 15
Children’s Trust Accounts — SSI 16
Military Staff 17
RI Military Family Relief Fund 18
RI National Guard Counterdrug Program 19
Treasury 20
Admin. Expenses — State Retirement System 21
Retirement — Treasury Investment Options 22
Defined Contribution — Administration - RR 23
Violent Crimes Compensation — Refunds 24
Treasury Research Fellowship 25
Business Regulation 26
Banking Division Reimbursement Account 27
Office of the Health Insurance Commissioner Reimbursement Account 28
Securities Division Reimbursement Account 29
Commercial Licensing and Racing and Athletics Division Reimbursement Account 30
Insurance Division Reimbursement Account 31
Historic Preservation Tax Credit Account 32
Marijuana Trust Fund 33
Social Equity Assistance Fund 34
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Judiciary 1
Arbitration Fund Restricted Receipt Account 2
Third-Party Grants 3
RI Judiciary Technology Surcharge Account 4
Department of Elementary and Secondary Education 5
Statewide Student Transportation Services Account 6
School for the Deaf Fee-for-Service Account 7
School for the Deaf — School Breakfast and Lunch Program 8
Davies Career and Technical School Local Education Aid Account 9
Davies — National School Breakfast & Lunch Program 10
School Construction Services 11
Office of the Postsecondary Commissioner 12
Higher Education and Industry Center 13
IGT STEM Scholarships 14
Department of Labor and Training 15
Job Development Fund 16
Contractor Training Restricted Receipt Account 17
Rhode Island Council on the Arts 18
Governors’ Portrait Donation Fund 19
Statewide records management system account 20
SECTION 4. This act shall take effect on July 1, 2025. 21
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE HEALTHCARE SERVICES
FUNDING PLAN ACT
***
This act would amend Rhode Island’s existing healthcare services funding plan act by 1
adding an account relating to a new psychiatry resource network to fund Rhode Island’s present 2
PediPRN and MomsPRN, as well as similar programs which may be added by regulation in the 3
future. It would also add an assessment to those previously authorized by the healthcare services 4
funding plan act for purposes of funding this new account. 5
This act would take effect on July 1, 2025. 6
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LC001590
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