SENATE MEMORIAL 37

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

Michael S. Sanchez

A MEMORIAL

REQUESTING THE LEGISLATIVE FINANCE COMMITTEE TO DIRECT LEGISLATIVE FINANCE COMMITTEE STAFF TO CONDUCT A STUDY ON THE COLLECTION, BILLING, CHARGING AND FINANCIAL ASSISTANCE PRACTICES OF ALL OF THE HOSPITALS IN NEW MEXICO TO RECOMMEND IMPROVEMENTS TO THE STATE'S INDIGENT CARE SYSTEM.

     WHEREAS, according to the New Mexico health insurance exchange, approximately thirteen and one-tenth percent of New Mexico's population, or two hundred seventy-three thousand one hundred forty-nine New Mexico residents, do not have health insurance after the implementation of the federal Patient Protection and Affordable Care Act, also known as "the ACA" or "Obamacare"; and

     WHEREAS, some uninsured residents are not required to obtain health insurance because they are exempt under the ACA due to a hardship or for other reasons; and

      WHEREAS, people who are uninsured often must forgo needed health care services, have less access to preventive care and behavioral health services and are likely to have medical debt; and

     WHEREAS, medical debt has been a major cause of bankruptcy nationwide and poses a significant obstacle for residents to gain financial security and build assets that benefit the community; and

     WHEREAS, even with federal tax credits and subsidies, health insurance remains unaffordable for low-income families with incomes less than two hundred percent of the federal poverty level; and

     WHEREAS, many hospitals receive public funds from the state and federal governments, including from the safety net care pool, federal disproportionate share hospital funds, county mill levy funds and tax exemptions to provide charity care to New Mexico's low-income and uninsured populations; and

     WHEREAS, New Mexico's hospitals that receive public funds have an obligation to serve and provide care to the state's uninsured residents; and

     WHEREAS, under state law, hospitals receiving safety net care pool funds must have written financial assistance policies that are publicized; and

     WHEREAS, the ACA requires nonprofit hospitals to assess community health needs, limit financial charges to uninsured indigent patients and make financial assistance policies widely available to their patients; and

     WHEREAS, many hospitals fail to publicize their financial assistance programs in accordance with state and federal law and often provide limited programs that do not cover needed medical services; and

     WHEREAS, hospitals routinely send the accounts of low-income patients to collections for unpaid hospital bills, including the accounts of patients with health insurance who cannot afford their deductibles, copays or co-insurance; and

     WHEREAS, financial assistance programs are not standardized for every hospital, creating a fragmented health care system in the state that hinders access to health care for low-income and uninsured patients;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the legislative finance committee be requested to direct its staff to conduct a study on hospital collection, billing, charging and financial assistance policies and ways to improve the indigent care system to reduce collections, improve financial assistance and increase access to care for low-income, uninsured and underinsured patients; and

     BE IT FURTHER RESOLVED that the legislative finance committee be requested, as part of its study on the indigent care system, to direct its staff to include a review of current hospital practices and policy options for improving hospital financial services statewide; and

     BE IT FURTHER RESOLVED that every hospital in New Mexico be requested to cooperate with the legislative finance committee by providing data on revenues; public funding received; amounts spent on uncompensated care, including bad debts and charitable care; financial assistance policies and procedures; billings and collections policies and practices; and any other information the committee deems necessary to conduct its study; and

     BE IT FURTHER RESOLVED that the legislative finance committee direct its staff to present a report and recommendations for improving the state's indigent care system to the legislative finance committee and the legislative health and human services committee by October 1, 2016; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor, the chair and vice chair of the legislative finance committee, the chair and vice chair of the legislative health and human services committee, the director of the legislative finance committee and the executive director of the New Mexico hospital association.

- 4 -