RELATING TO INSURANCE; CREATING A MENTAL HEALTH INSURANCE PARITY PILOT PROGRAM FOR STATE EMPLOYEES; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. MENTAL HEALTH INSURANCE PARITY--PILOT PROGRAM.--The risk management division of the general services department shall implement and maintain for fiscal years 1999 and 2000 a mental health insurance parity pilot program providing behavioral health coverage for state employees. The pilot program shall ensure that an insured with a severe, persistent, biologically based mental illness receives appropriate quality and quantity of treatment on a parity with an insured with any other physical illness with respect to the terms, conditions, rates, benefits or requirements of the insurance contract. For purposes of this coverage, "severe, persistent, biologically based mental illness" means schizophrenia, schizoaffective disorder, bipolar disorder, major depressive disorder, panic disorder or obsessive-compulsive disorder as defined in the leading international manuals on classification of diseases and diagnostic statistics.

Section 2. PROVIDER REIMBURSEMENT.--If the contracts or contract amendments establishing the mental health insurance parity pilot program authorized in Section 1 of this act are terminated prior to the end of fiscal year 2000, the general services department shall reimburse the insurance provider any extraordinary expenses incurred in providing benefits under the pilot program. The terms and limitations of this reimbursement shall be stated in the contracts or contract amendments.

Section 3. EVALUATION--REPORT.--The risk management division of the general services department shall, after consultation with representatives of the health insurance industry, mental health providers, including that for state employees, and mental health advocates, develop a program of evaluation for the mental health insurance parity pilot program and shall report its findings and any legislative recommendations to the appropriate interim legislative committee by October 1, 2000.

Section 4. APPROPRIATION.--One hundred fifty thousand dollars ($150,000) is appropriated from the general fund to the risk management division of the general services department for expenditure in fiscal year 1999 for the purpose of administering a mental health insurance parity pilot program. Any unexpended or unencumbered balance remaining at the end of fiscal year 1999 shall revert to the general fund.

HB 315

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