New Mexico’s Unique Approach to Mental Health Care: Insights from a Comprehensive Study

A recent study conducted by an associate professor at the University of Minnesota has shed light on the impact of New Mexico’s unique law that eliminated behavioral health co-pays for individuals in certain insurance plans. Two years ago, the state implemented this ambitious approach to reduce costs for consumers and improve access to care.

Ezra Golberstein, the researcher behind the study, was initially surprised by the No Behavioral Health Cost Sharing Act when he first learned about it in a newsletter. He noted that no other state had attempted such a comprehensive approach to addressing mental health care costs.

The results of the study showed that within the first six months of the law taking effect, out-of-pocket costs decreased. However, there was no significant increase in individuals seeking mental health treatment. Golberstein explained that most prescriptions are for generic drugs, which are already affordable, so 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.

There are limitations to the law as it only applies to insurance plans obtained through employers and not all companies comply with it due to a carveout for “self-funded” insurance. 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 two sources: The W.K Kellogg Foundation and KUNM listeners.