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Senate adopts substitute to clarify maternity coverage and admission notice protections
Summary
The Utah Senate passed First Substitute Senate Bill 23 to clarify that customary, reasonable maternity and delivery costs are covered when prenatal care pre-authorization has been obtained, and to prevent insurers from denying benefits solely for failure to give an admission notice, 27–0 with two absent.
The Utah Senate on Jan. 26 passed First Substitute Senate Bill 23, clarifying insurance coverage for maternity care and protecting beneficiaries from coverage denials tied solely to admission-notice rules.
Senator Millie Peterson, sponsor of the measure, told colleagues the substitute makes explicit that reasonable and customary maternity-care and delivery expenses are covered if the insurer previously pre-authorized prenatal care. The language also acknowledges common policy requirements that a hospital admission be reported but specifies that failure to provide notice cannot be used to deny or reduce benefits.
Senator Stewart and other senators asked for specifics about whether the notice provision could be read as a referral or pre-authorization requirement. Peterson and other supporters said the change is intended as a notice clause to trigger utilization-review processes, not as a gateway to coverage, and noted Dixon Larkin of the Insurance Commissioner’s Office helped draft the substitute language.
With no further questions, the Senate called the question. On roll call the substitute was approved, 27 ayes, 0 nays, 2 absent, and will be transmitted to the House for further consideration.
The bill’s sponsor said she would consult with colleagues after passage to ensure the substitute’s language meets expectations; because the measure will proceed to the House, any additional changes could be addressed in committee there.
