Two years ago, New Mexico implemented a unique law that eliminated behavioral health co-pays for individuals in certain insurance plans. According to a recent study of the law, the results were mixed. Ezra Golberstein, an associate professor at the University of Minnesota, was initially surprised by the Behavioral Health Cost-Sharing Act when he first learned about it in a newsletter. He noted that no other state has attempted such an ambitious approach to reducing costs for consumers and improving access to care.
A study conducted by Golberstein's team found that out-of-pocket costs decreased in the first six months after the law went into effect. However, the law did not necessarily lead to an increase in the number of individuals seeking mental health care. Golberstein explained that since most prescriptions are for generic drugs, which are already affordable, reducing costs to zero for these drugs did not significantly affect prescribing patterns. Despite this, there was a slight increase in new prescriptions for more expensive drugs.
There are limitations in the law, as it specifically applies to insurance plans obtained from employers. Many of the state's largest employers are not required to comply due to restrictions on “self-funded” insurance, which is typically chosen by large companies. However, the law affects individuals with insurance through the Affordable Care Act Marketplace or government employees. Golberstein emphasized that New Mexico continues to serve as a testing ground for this type of law, and his team plans to conduct further research on its impact.
The study was made possible by funding from the VK Kellogg Foundation and KUNM listeners.