A unique law was implemented in New Mexico two years ago, eliminating behavioral health co-pays for individuals in certain insurance plans. According to a recent study on the law, the results have been mixed. Ezra Golberstein, an associate professor at the University of Minnesota, was surprised when he first learned about the No Behavioral Health Cost Sharing Act, as no other state had attempted such an ambitious initiative to reduce the cost of mental health services for consumers and improve access to care.
The study conducted by Golberstein showed that in the first six months following the implementation of the law, out-of-pocket costs decreased. However, it did not appear to encourage new individuals to seek mental health treatment. Golberstein noted that most prescriptions were for generic drugs, which are already relatively inexpensive. Therefore, reducing the cost to zero for these drugs did not significantly impact the dispensing patterns.
Although the law has shown positive outcomes, there are limitations to its effectiveness. It primarily applies to insurance obtained through employers, with many of the largest employers in the state not required to comply due to a carve out for “self-funded” insurance. Individuals with insurance through the Affordable Care Act Marketplace or state employees are impacted by the law.
Researchers continue to study the effects of this unique law in New Mexico to determine its overall impact. The state remains an ideal testing ground for innovative legislation like the No Behavioral Health Cost Sharing Act. This research is supported by the W.K. Kellogg Foundation and KUNM listeners.