45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO PUBLICLY FUNDED HEALTH CARE PROGRAMS; PROVIDING EXPANSION TO OTHER POLITICAL SUBDIVISIONS TO USE THE CONSOLIDATED PURCHASING SINGLE PROCESS; PROVIDING FOR APPLICABILITY OF CERTAIN PROVISIONS OF THE NEW MEXICO INSURANCE CODE; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978.

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

Section 1. A new section of the Health Care Purchasing Act is enacted to read:

"[NEW MATERIAL] CONSOLIDATED PURCHASING FOR OTHER PERSONS.--

A. Counties, municipalities, state educational institutions and other political subdivisions that wish to use the consolidated purchasing single process for the procurement of health care benefits shall create or enter into an existing association, cooperative or other mutual alliance to create larger pools of eligible participants.

B. Counties, municipalities, state educational institutions and other political subdivisions that wish to use the consolidated purchasing single process shall, through their respective association, cooperative or mutual alliance, participate in the subsequent consolidated purchasing single process with the publicly funded health care agencies."

Section 2. A new section of the Health Care Purchasing Act is enacted to read:

"[NEW MATERIAL] USE OF SOCIAL SECURITY NUMBERS.--The publicly funded health care agencies or other persons providing health care benefits through the consolidated purchasing single process shall not require the use of participants' social security numbers as health care benefit plan identification numbers."

Section 3. A new section of the Health Care Purchasing Act is enacted to read:

"[NEW MATERIAL] CONSOLIDATED ADMINISTRATIVE FUNCTIONS.--

A. By December 31, 2001, the retiree health care authority, in consultation with the publicly funded health care agencies, political subdivisions and other persons participating in the consolidated purchasing single process pursuant to the Health Care Purchasing Act, shall consolidate, standardize and administer the administrative functions that the retiree health care authority can effectively and efficiently administer for those entities, including:

(1) eligibility;

(2) benefit utilization;

(3) enrollment information; and

(4) communications to participants regarding enrollment, updates and general information.

B. The retiree health care authority shall have the primary responsibility for ensuring that the publicly funded health care agencies, political subdivisions and other persons participating pursuant to the Health Care Purchasing Act are in compliance with the federal Health Insurance Portability and Accountability Act of 1996, including other administrative simplification and privacy and confidentiality requirements as provided in state and federal law.

C. The retiree health care authority shall provide for the publicly funded health care agencies, political subdivisions and other persons participating pursuant to the Health Care Purchasing Act a central process for:

(1) dissemination of information to all covered and potential participants;

(2) input and output of health care data;

(3) design of and access to electronic media information relating to health care plans, benefits, enrollment and general information; and

(4) transition of employee benefits from one participating employer to another and, if applicable, at retirement.

D. The retiree health care authority may enter into a joint powers agreement pursuant to the Joint Powers Agreements Act with the publicly funded health care agencies and political subdivisions to determine assessments or provisions of resources to consolidate, standardize and administer the consolidated purchasing single process and subsequent activities pursuant to the Health Care Purchasing Act. The retiree health care authority may enter into contracts with nonpublic persons that participate in the purchase of health care benefits pursuant to the Health Care Purchasing Act to determine assessments or provisions of resources for consolidation, standardization and administrative activities.

E. The retiree health care authority shall provide a status report on the consolidation of administrative functions to the legislative health and human services committee by December 1, 2001."

Section 4. Section 59A-1-16 NMSA 1978 (being Laws 1984, Chapter 127, Section 16, as amended) is amended to read:

"59A-1-16. EXEMPTED FROM CODE.--In addition to organizations and businesses otherwise exempt, the Insurance Code shall not apply to:

A. a labor organization that, incidental only to operations as a labor organization, issues benefit certificates to members or maintains funds to assist members and their families in times of illness, injury or need, and is not for profit;

B. the credit union share insurance corporation, as identified in Chapter 58, Article 12 NMSA 1978, and similar corporations and funds for protection of depositors, shareholders or creditors of financial institutions and businesses other than insurers; or

C. the risk management division of the general services department, the public school insurance authority, the retiree health care authority and any public school district or to insurance of public property or public risks by any agency of government not otherwise engaged in the business of insurance, except the provisions of the Patient Protection Act and Sections 59A-2-9.2 and 59A-23E-18 NMSA 1978 shall apply to [and any managed health care plan it offers] any entity required or authorized to purchase health care benefits pursuant to the Health Care Purchasing Act."