Senate Finance rolls over bill to make behavioral health cost-sharing permanent after debate over costs and data

Senate Bill 120, which would permanently eliminate patient out-of-pocket cost sharing for behavioral health services, was discussed at length in Senate Finance and was rolled over for further review rather than advanced to a committee vote.

Sponsor Senator Hickey said analyses show the elimination of behavioral health cost sharing improves access to services and can lower total health costs for high-need patients. An Office of Superintendent of Insurance (OSI) witness reported that carriers’ reports showed consumer cost‑sharing savings of slightly over $7 million in FY23 and $8 million in FY24, and that unique membership receiving behavioral health services rose from 27.9% in FY23 to 36.08% in FY24. The OSI representative also said only one individual carrier reported a direct premium impact (1.5%) for the 2025 plan year; other carriers reported no premium impact attributable to the policy change.

Opponents from America’s Health Insurance Plans (AHIP) argued the committee should wait for more complete rate-setting data and for the existing sunset (listed in the bill as Jan. 1, 2027) to lapse before making the change permanent. Brent Moore, representing America’s Health Insurance Plans, said the original law included a multi‑year test period and that additional years of data should be allowed to mature before removing the sunset.

Committee debate focused heavily on conflicting fiscal-impact reviews (FIRs) and different agency cost estimates. Multiple senators and witnesses noted that earlier FIRs showed differing budgetary impacts (figures discussed in committee included summaries of about $34 million and $63 million over multi-year windows in some documents, while other materials attributed the expense to existing benefit funds rather than the general fund). Because of that disagreement and outstanding questions about which plans (for example, state retiree plans or multiemployer pools) have already eliminated cost sharing, the chair said the committee would roll the bill over until the next day to allow analysts to reconcile the FIRs and provide corrected documentation.

Supporters in the hearing included Emily Pepin of the New Mexico Behavioral Health Providers Association, who urged a yes vote and said the bill “diminishes barriers and supports health for all New Mexicans.” Opponents included the AHIP representative who described concerns about premature action while analyses continue. The committee did not take a final vote and directed staff and sponsors to reconcile fiscal notes and related language before returning.