In 2019, a groundbreaking law was introduced in New Mexico that eliminated co-pays for behavioral health services for individuals with specific insurance plans. A recent study conducted by Ezra Golberstein, an associate professor at the University of Minnesota, examined the impact of this law and revealed mixed results.
Golberstein was surprised when he first came across the No Behavioral Health Cost Sharing Act as it was the first of its kind in the country. The goal of the law was to reduce costs for consumers and improve access to mental health care.
The study showed that out-of-pocket costs decreased in the initial six months after the law was implemented. However, it did not lead to an increase in individuals seeking mental health treatment. Golberstein noted that most prescriptions are for generic medications, which are already affordable, so reducing the cost to zero did not significantly change medication dispensing patterns. Interestingly, there was a slight uptick in new prescriptions for more expensive medications.
Despite its positive impact, the law has some limitations. It primarily targets insurance provided by employers but many of New Mexico’s largest employers are exempt due to a carve-out for “self-funded” insurance. However, individuals covered by insurance through the Affordable Care Act Marketplace or state employees are affected by this law. Golberstein mentioned that New Mexico is still testing the effectiveness of such legislation and further research is underway.
This study was funded by the W.K. Kellogg Foundation and KUNM listeners shedding light on New Mexico’s unique approach to improving access to and affordability of behavioral health services.
