Senate committee advances bill moving mental‑health fee rules into statute, keeps 5% cap

The Senate Health and Welfare Committee voted to send House Bill 220 to the Senate floor with a due‑pass recommendation after hearing from the Department of Health and Welfare about technical changes needed following a move to a contractor model for services.

Jared Larson, legislative and regulatory affairs chief at the Department of Health and Welfare, told the committee the bill transfers provisions from administrative rule into statute and simplifies an outdated sliding fee schedule for children’s and adult mental‑health services. “We get rid of that fee schedule because it's unwieldy for contractors to carry out,” Larson said, adding the bill retains a 5% cap on income for cost sharing and preserves the requirement that “nobody is denied services for an inability to pay.”

The measure follows the department’s transition away from direct service provision to a contractor model tied to the Magellan contract that began July 1. Larson told the committee that although the old sliding scale remains in regulation, “nobody’s been paying anything since 2020,” and the statute change is intended to give contractors a clearer, implementable rule set while keeping the policy protections in place.

Senator Blaylock moved to send the bill to the floor with a due‑pass recommendation; Senator Harris seconded. Senator Wintrow said she had worked through questions with Larson and department staff and supported the change, noting relief that the bill “guarantee[s] we’re not going to cut services off if somebody actually still needs them and can’t afford to pay.” The committee approved the motion by voice vote.

The department described the proposal as budget neutral and as a technical codification of existing policy, not as a new fee increase. Committee members did not introduce amendments during the hearing.

House Bill 220 will appear on the Senate floor for further consideration.