Tennessee Senate Bill SB1248

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 8; Title 33; Title 39; Title 49; Title 53; Title 56; Title 63; Title 68 and Title 71, relative to mental health.

Summary

SB1248 expands and clarifies Tennessee’s mental health parity requirements in insurance law. The bill amends the definition of “health benefit plan” and “health insurance carrier” to expressly include TennCare and related state-administered coverage, and it revises existing parity language so that mental health services and treatment must be covered to the same extent as alcoholism and drug dependence treatment. It also updates disclosure requirements so insurers must explain parity in coverage and reimbursement rates for mental health and substance use disorder services. The bill further adds residential or other mental health treatment facilities licensed under Title 33 to the list of facilities covered under the relevant insurance provisions, and it reinforces that coverage for mental health treatment must remain in parity with coverage for alcoholism and drug dependence. The act applies prospectively to policies, plans, and contracts entered into, renewed, amended, or modified on or after July 1, 2025.

Impact

This bill would amend Tennessee Code Annotated sections in Title 56 governing health insurance coverage and parity, with related implications for TennCare and other state-administered health benefit plans. It would require health insurance carriers and plans to maintain equal coverage standards for mental health treatment and substance use disorder treatment, and it would expand the statutory framework to include certain licensed residential mental health treatment facilities. Insurers and plan administrators would need to update benefit designs, reimbursement practices, and disclosure materials to comply with the revised parity requirements.

Sentiment

The bill’s overall policy direction is strongly supportive of mental health access and parity, with the text reflecting an intent to strengthen coverage protections rather than limit them. Because no committee transcripts or recorded votes were provided, there is no documented public debate in the supplied materials. Based on the bill language alone, the measure appears to be framed as a consumer- and patient-protection bill focused on equal treatment of mental health and substance use disorder services.

Contention

The main potential point of contention is the expanded insurance mandate, especially for carriers, employers offering health plans, and TennCare-related coverage administrators who may face increased compliance obligations or costs. Another possible issue is the bill’s requirement that mental health treatment coverage remain in parity with alcoholism and drug dependence coverage, which could raise questions about how parity is measured in practice, including reimbursement rates, utilization management, and facility coverage. No specific opposing arguments or named stakeholders were included in the provided discussion materials.