March 18, 1999

The Honorable Raymond G. Sanchez and

Members of the House of Representatives

Executive-Legislative Building

Santa Fe, New Mexico 87503

Honorable Speaker and Members of the House:

I have this day VETOED and am returning HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR HOUSE BILL 489, as amended enacted by the Forty-Fourth Legislature, First Session, 1999.

Specifically, this legislation provides employers the option of excluding mental health services from their plan. It is my belief that there exists, among employers, a sense that parity will result in an increase of insurance costs to unmanageable levels. In this environment and with the provision that companies can opt out of any coverage altogether, it is my belief that many companies will opt out of providing mental health coverage resulting in fewer individuals covered for mental health services.

While I believe the concept of mental health parity coverage is good, this bill presents a problem that could result in less mental health services delivered, the exact opposite effect the proponents desired with this legislation.

Sincerely,

Gary E. Johnson

Governor