New Mexico’s No Behavioral Health Cost Sharing Act: A Testing Ground for Affordable Mental Health Care?

Recently, New Mexico implemented a unique law that eliminated behavioral health co-pays for individuals in certain insurance plans. The results of the law have been varied, according to a recent study conducted by Ezra Golberstein and his team at the University of Minnesota. Golberstein was initially surprised by the No Behavioral Health Cost Sharing Act when he first learned about it, noting that no other state had attempted such an ambitious approach to reducing costs for consumers and improving access to care.

The study showed that within the first six months of the law taking effect, out-of-pocket costs decreased. However, the law did not necessarily lead to an increase in individuals seeking mental health treatment. Golberstein explained that since most prescriptions are for generic drugs, which are already affordable, reducing the cost to zero for these medications did not significantly impact medication dispensing patterns. Despite this, there was a slight rise in new prescriptions for more expensive medications.

However, there are limitations to the law as it specifically targets insurance plans obtained through employers. Many of the state’s largest employers are not required to comply due to a carveout for “self-funded” insurance, which is commonly chosen by large companies. However, individuals with insurance through the Affordable Care Act Marketplace or state employees are affected by the law. Golberstein emphasized that New Mexico continues to serve as a testing ground for this type of legislation and his team plans to conduct further research on its impact.

The study was made possible by funding from the W.K. Kellogg Foundation and KUNM listeners.