Illinois Mental Health Crisis Care Bill Would Charge Insurance Companies $33 Million to Fund Behavioral Health Services
Illinois legislators are pushing a bill that would require private health insurance companies to pay a surcharge to fund mental health crisis care services, mirroring similar legislation in Massachusetts.
The proposal, House Bill 4785, passed out of the Illinois Human Services Committee on an 8-4 vote and now awaits action on the House floor before the April 17 deadline for third reading.
Rep. Lindsey LaPointe (D-Chicago) sponsored the bill, arguing that private insurers currently shift the cost of mental health crisis services onto Medicaid and taxpayers. This results in avoidable emergency room visits, hospitalizations, or involvement with the criminal justice system.
Private insurers pay for ambulances, right? They pay for ER visits, LaPointe said. So, with this surcharge, we are asking them to chip in to the 988 mobile crisis and crisis stabilization units because mental healthcare is healthcare.
The bill would generate funding without raising taxes and reduce pressure on the state budget. Massachusetts enacted similar legislation charging insurance companies $33.7 million annually to fund mental health crisis care.
This is about access, dignity and making sure that when someone needs care, they can get it without delay and financial hardship, said Sen. Karina Villa (D-West Chicago).
Money from the surcharge would go directly into the state's 988 trust fund. The 988 number is the Suicide and Crisis Lifeline that replaced the 1081 Suicide Prevention Lifeline in 2022. The trust fund supports mobile crisis teams and crisis stabilization units that provide immediate mental health support to people in crisis situations.
The bill addresses a growing concern about access to behavioral healthcare services. Illinois has seen increased demand for mental health support, with local communities reporting higher costs for speech-language and behavioral health services.
Medicaid providers in Glen Ellyn billed $226,497 for medicine services and procedures in 2024, a 2.9 percent increase over 2023. This is part of a 65.5 percent rise in Medicaid spending in the area since 2019. The local spending is concentrated in the 60137 ZIP code and heavily focused on speech-language and behavioral health services.
As federal Medicaid funding faces potential cuts, the burden could increasingly fall on the state and local government to cover these essential services, the Glen Ellyn report noted.
The Illinois House is considering whether to adopt an annual fee on health insurance companies to help sustain critical services. Some lawmakers believe this approach would be more effective than raising taxes on Illinois residents.
The bill follows similar legislation in other states that have recognized the connection between private health insurance and mental health crisis costs. When private insurers cover physical health services but not mental health services, the costs often shift to public programs and taxpayers.
Mental health crisis care includes mobile crisis teams that respond to calls from people in mental health emergencies. Crisis stabilization units provide short-term residential care for people who need immediate support but do not require hospitalization.
The bill passed out of committee with support from mental health advocates who argue that mental healthcare is healthcare and should be treated with the same urgency and funding as other medical services.
The Illinois House floor vote is expected soon, with the deadline for third reading set for April 17. If the bill passes the House, it would then move to the Senate for consideration.