Mixed Results of New Mexico’s Unique Behavioral Health Law: An Analysis of the No-Cost-Sharing Act

A unique law aimed at improving access to behavioral health services in New Mexico was implemented two years ago. The No Behavioral Health Cost Sharing Act eliminated co-pays for individuals with certain insurance plans, with the goal of reducing costs and improving access to mental health care. A recent study conducted by Ezra Golberstein, an associate professor at the University of Minnesota, showed mixed results.

Golberstein was surprised when he first came across the law as it was the first of its kind in the country. Out-of-pocket costs decreased in the initial six months after implementation, but there did not seem to be a significant increase in individuals seeking mental health treatment. Golberstein noted that since most prescriptions are for generic medications, which are already affordable, reducing costs to zero did not significantly change medication dispensing patterns. However, there was a slight uptick in new prescriptions for more expensive medications.

The law has some limitations as it primarily targets insurance provided by employers. However, many of the state’s largest employers are exempt due to the carve-out for “self-funded” insurance. 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 improve access to and affordability of behavioral health services.