Two years ago, a unique law was implemented in New Mexico that eliminated behavioral health co-pays for individuals in certain insurance plans. However, a recent study on the law has shown mixed results in its effectiveness. Ezra Golberstein, an associate professor at the University of Minnesota, was initially skeptical when he first learned about the No Behavioral Health Cost Sharing Act in a newsletter. This law is an ambitious attempt to reduce the cost of services for consumers and improve access to mental health care.
The study led by Golberstein revealed that in the first six months after the law took effect, out-of-pocket costs decreased, but it did not necessarily incentivize new individuals to seek mental health treatment. Most prescriptions were for generic drugs, which are already affordable for most people. Therefore, the reduction in cost for these drugs did not significantly alter prescription patterns. However, there was a slight increase in new prescriptions for more expensive medications.
While the law targets insurance obtained through employers, many of the state’s largest employers are not required to comply due to a carve out for self-funded insurance. This type of insurance is commonly selected by large companies. Individuals with insurance through the ACA Marketplace or state employees are impacted by the law. New Mexico continues to be a testing ground for such laws, with ongoing research projects being conducted on this particular one.
Funding for this coverage is provided by the W.K. Kellogg Foundation and KUNM listeners.