New Mexico’s Governor Gary Johnson (R) signed a mental health parity bill into law last month after a long-fought battle by mental health advocates to make parity a reality there. New Mexico is the 26th state with a parity law.

Rep. Edward Sandoval (D) and Robert Burpo (R) were key players in negotiating the bill through the legislature, according to George Greer, M.D., legislative representative for the Psychiatric Medical Association of New Mexico.

Greer also credited Mabel Frary, a lobbyist for the New Mexico Alliance for the Mentally Ill for championing mental health parity for several years. Along with U.S. Sen. Pete Domenici, they were able to persuade Johnson and members of the business community that mental health coverage is affordable, noted Greer.

Katherine Becker, deputy director for state affairs in APA’s Division of Government Relations, commented to Psychiatric News, "The New Mexico parity law represents a hard-fought victory for psychiatrists and other parity advocates. By persevering, they refused to concede to those who would justify the unjustifiable—health insurance discrimination against people with mental illnesses."

The law, which will become effective in October, requires group health plans or group health insurance offered to employers to cover all mental illnesses except for gambling addictions and substance abuse, noted Greer.

Plans can impose only treatment limitations or financial requirements on mental health benefits that are equal to those imposed on the plan’s medical and surgical benefits, Greer stated.

The parity bill allows businesses to opt out from covering mental illnesses under certain conditions. A company with 50 or more employees must show that its annual premiums increased more than 2.5 percent due to the new coverage requirements. A company with fewer than 50 employees can opt out if it can demonstrate that its health insurance costs exceed 1.5 percent.

The governor vetoed a different parity bill last year because it did not require any conditions to be met before opting out, said Greer.