Committee recommends making behavioral-health cost sharing permanent after study and agency testimony

The Senate Health and Public Affairs Committee voted 6–3 to recommend a committee substitute for Senate Bill 120 that would remove the law27s expiration and make the state27s elimination of many behavioral-health co‑pays permanent.

Sponsor Senator Gregg Hickey told the committee the change aims to reduce financial barriers that deter people from continuing therapy or medication for mental health and substance-use disorders. "When mental health issues for people with chronic disease are stabilized, the cost of the chronic disease comes down," he said, citing actuarial research and his prior experience running a health plan that eliminated behavioral-health cost sharing.

Researchers with a National Institute of Mental Health grant described early study results. "Those people who were affected by the law saw out-of-pocket costs fall dramatically," said Ezra Golberstein, an associate professor of health policy at the University of Minnesota and principal investigator on an ongoing evaluation. He told the committee preliminary research showed an 86% reduction in out-of-pocket costs for targeted medications in the early months of implementation and that longer-term outcomes are the subject of an NIH-funded study.

Witnesses from the Office of the Superintendent of Insurance and disability advocates said state data indicate the law is working as intended and have not shown a material rate increase tied to the coverage change. Vyaria Nakhiva, OSI27s life and health division director, said OSI is collecting data and "we have evidence that it's saving money and it's working as intended."

Health-insurance trade representatives urged caution. Brent Moore, a registered lobbyist for America's Health Insurance Plans, said industry data are incomplete and argued the committee should consider extending the sunset rather than making the change permanent to allow more study. Blue Cross Blue Shield of New Mexico also registered concerns about the timing and requested more analysis before permanence.

Committee supporters highlighted constituent testimony and studies that suggest improved medication adherence and lower use of emergency care among people covered by plans without behavioral-health cost sharing. The committee approved the substitute and sent it forward with the 6–3 recommendation.

What happens next: The substitute moves to the Senate floor and could be amended or debated further. Supporters argued making the cost-sharing elimination permanent will increase access to care; opponents said more comprehensive rate and utilization data are needed before permanence.