44th legislature - STATE OF NEW MEXICO - second session, 2000

REQUESTING THE INSURANCE DIVISION OF THE PUBLIC REGULATION COMMISSION TO STUDY THE POSSIBILITY OF AN EXCESS MEDICAL INSURANCE POOL TO FUNCTION AS A STOP-LOSS REINSURER FOR ALL HEALTH CARE OPTIONS IN THE STATE.

WHEREAS, currently private sector providers of health care purchase stop-loss reinsurance protection from reinsurance carriers outside New Mexico and reinsurance dollars are nonrecoverable; and

WHEREAS, an excess medical insurance pool could benefit all in the state because the cost for excess medical claims under medicaid, the public health system, hospital emergency rooms and comprehensive health insurance pool is indirectly paid by all New Mexico citizens; and

WHEREAS, an excess medical insurance pool would complement and build on the foundation of the private commercial, employer-based health care system and the public health care system by pooling the funds now used to purchase stop-loss reinsurance into a fund from which excess medical claims could be paid, thereby creating a self-sustaining pool that would not require public funding; and

WHEREAS, an excess medical insurance pool could implement the law of large numbers and spread the risk of catastrophic excess medical losses for all New Mexico citizens, facilitating risk sharing across the health care system; and

WHEREAS, an excess medical insurance pool could facilitate a collaboration between the public and private sectors of health care in the development of a base line plan of health care and delivery of health care in New Mexico;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the insurance division of the public regulation commission, in cooperation with the New Mexico health policy commission, the human services department and other study groups in the state, determine the feasibility of an excess medical insurance pool as a mandated excess stop-loss pool for all sources of medical care in New Mexico; and

BE IT FURTHER RESOLVED that the insurance division report its findings and recommendations to the legislature prior to the first session of the forty-fifth legislature; and

BE IT FURTHER RESOLVED that a copy of this memorial be sent to the superintendent of insurance, the chairman of the New Mexico health policy commission and the secretary of human services.