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SD 1553

An Act requiring mental health parity for disability policies

194th Legislature (2025-2026) Introduced by Mike Barrett and 1 co-sponsor

Bill requires disability insurance policies to cover mental health services equally with physical health, eliminating cost-sharing disparities and visit limits.

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Bill Summary · SD 1553

Legislative bill overview

SD 1553 requires that disability insurance policies provide mental health coverage on equal terms with physical health coverage, eliminating differential treatment such as higher deductibles, copayments, or visit limits for mental health services. The bill enforces parity standards to ensure mental health conditions receive the same financial coverage as medical/surgical conditions under disability policies.

Why is this important

Mental health conditions are among the leading causes of disability, yet insurance policies have historically imposed stricter limits on mental health coverage, effectively creating a two-tiered system. This bill aligns state disability policy with the principle that mental and physical health deserve equal treatment, reducing financial barriers to treatment for conditions like depression, anxiety, and substance use disorders.

Potential points of contention

  • Cost implications: Insurers may argue that expanded mental health coverage increases premiums or reduces profitability, potentially raising disability insurance costs for employers and individuals
  • Definition of "parity": Disputes may arise over what constitutes equal treatment—whether parity means identical copayments for all conditions or risk-adjusted structures
  • Federal overlap: The federal Mental Health Parity and Addiction Equity Act already mandates some parity protections; clarification needed on whether this bill creates redundant or stricter state requirements

Compiled from official sources — confirm details with the bill’s official record.

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