SENATE BILL 427

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Steve Komadina

AN ACT

RELATING TO HEALTH CARE; PROVIDING FOR FACILITY AND HEALTH CARE PROVIDER RISK INSURANCE COVERAGE; AMENDING A SECTION OF THE NMSA 1978.

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

     Section 1. A new section of Chapter 15, Article 7 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] HEALTH CARE PROVIDER RISK INSURANCE COVERAGE.--

           A. As deemed necessary for the public health of New Mexico by the secretary of health, a health care provider may voluntarily purchase risk insurance coverage offered pursuant to Section 15-7-3 NMSA 1978.

          B. A separate account shall be maintained for the health care provider that voluntarily elects to purchase risk insurance coverage pursuant to Section 15-7-3 NMSA 1978.

          C. For the purposes of this section, "health care provider" means a person, corporation, organization, facility or institution licensed or certified by this state to provide health care or professional services as a licensed physician, hospital, outpatient health care facility, osteopathic physician, chiropractic physician, podiatrist, nurse anesthetist, physician assistant, dentist, psychologist, doctor of oriental medicine, certified nurse practitioner or certified nurse-midwife."

     Section 2. Section 15-7-2 NMSA 1978 (being Laws 1978, Chapter 166, Section 7, as amended) is amended to read:

     "15-7-2. RISK MANAGEMENT DIVISION.--

          A. There is established a "risk management division" of the general services department. The director of the risk management division shall be appointed by the secretary of general services. The director shall be knowledgeable and experienced in general insurance practices. The director shall be responsible for the acquisition and administration of all insurance purchased by the state. Except as provided by this section, no state agency may procure any kind of insurance other than through the risk management division.

          B. The risk management division shall apportion to each state agency or health care provider as referenced in Section 1 of this 2005 act its contributions toward the purchase of insurance or for the providing of coverage for any risk not insured. The amount of contribution by each agency or health care provider as referenced in Section 1 of this 2005 act shall be determined by the risk management division and shall reflect the respective risks of each agency or health care provider as referenced in Section 1 of this 2005 act. All contributions toward the purchase of insurance or for the coverage of any risk not insured shall be paid into the public liability fund, the workers' compensation retention fund, the public property reserve fund or the group self-insurance fund, as appropriate. The department of finance and administration may collect or transfer funds from each agency or health care provider as referenced in Section 1 of this 2005 act to cover insurance or other costs, pursuant to the risk management division's instructions.

          C. The director, upon a finding that efficiency and economy so require, may authorize any state agency to purchase insurance for, or otherwise cover, vision, dental, any group or individual health, life, accidental death and dismemberment or disability coverage. Any authorization granted shall be conditioned upon the prior approval by the director of any policy to be purchased and the premium to be paid by the agency."

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