State of New Mexico
                      House of Representatives
  
                      FORTY-THIRD LEGISLATURE
                        FIRST SESSION, 1997
  
  
                                                February 28, 1997
  
  
  Mr. Speaker:
  
       Your JUDICIARY COMMITTEE, to whom has been referred
  
     HOUSE LABOR AND HUMAN RESOURCES COMMITTEE SUBSTITUTE
                FOR HOUSE BILL 351, as amended
                               
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1.  On page 5, line 3, after "E." strike the remainder of the
  line, strike all of lines 4 through 13 and insert in lieu thereof:
  
            "A managed health care plan offered through the medicaid
  program shall be required to maintain a medical loss ratio of at
  least ninety percent, so that at a minimum ninety percent of all
  premium dollars collected are paid for the direct provision of
  health care services.  The department of insurance shall adopt
  regulations to define the "medical loss ratio" consistent with the
  provisions of this subsection.",
  
  and thence referred to the APPROPRIATIONS AND FINANCE
  COMMITTEE. 
       
  
                                Respectfully submitted,
  
  
  
                                                                 
                                                              Thomas P. Foy, Chairman
  
  
  Adopted                       Not Adopted                       
            (Chief Clerk)                       (Chief Clerk)
  
                         Date             
  
  The roll call vote was 7  For 0  Against
  Yes:      7
            Excused:  Alwin, King, Larranaga, Mallory, Rios, Sanchez
            Absent:   None
  
  
  .117858.1
  G:\BILLTEXT\AMEND_97\H0351JC1