New Mexico recently implemented a law that eliminated behavioral health co-pays for individuals with certain insurance plans, with the goal of reducing costs and improving access to mental health care. A study conducted by Ezra Golberstein, an associate professor at the University of Minnesota, revealed mixed results.
The study found that out-of-pocket costs decreased in the initial six months after the law was implemented. However, there was no significant increase in individuals seeking mental health treatment. Golberstein noted that since most prescriptions are for generic medications, which are already affordable, 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.
While the law has its limitations, it primarily targets insurance provided by employers. However, many of New Mexico’s largest employers are exempt due to a 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.
The 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.