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

RELATING TO HEALTH; EXPANDING MEDICAID COVERAGE FOR CERTAIN CUSTODIAL PARENTS; REQUIRING CONSULTATION WITH THE LEGISLATURE; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.

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

Section 1. Section 27-12-3 NMSA 1978 (being Laws 1998, Chapter 52, Section 3) is amended to read:

"27-12-3. DEFINITIONS.--As used in the Child Health Act:

A. "child" means a natural person who has not reached his nineteenth birthday;

B. "department" means the human services department;

C. "earned income" includes cash or payment in kind that is received as wages from employment or payment in lieu of wages; earnings from self-employment or earnings acquired from the direct provision of services, goods or property, production of goods, management of property or supervision of services; and other income not classified as unearned income;

[C.] D. "low-income children and their families" means a family with a dependent child with income at or below the level specified in Section [6 of the Child Health Act] 27-12-6 NMSA 1978; [and

D.] E. "secretary" means the secretary of human services; and

F. "unearned income" includes old age, survivors and disability insurance; railroad retirement benefits; veterans administration compensation or pension; military retirement; pensions, annuities and retirement benefits; lodge or fraternal benefits; shared shelter payments; settlement payments; individual Indian money; and similar kinds of income."

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

"[NEW MATERIAL] COVERAGE FOR PARENTS--INCOME DISREGARDS--CONSULTATION WITH THE LEGISLATURE.--

A. Subject to the availability of state and federal matching funds pursuant to Title 21 of the federal Social Security Act, a custodial parent of a medicaid-eligible child is eligible for medicaid if the parent's earned income is below one hundred percent of the federal poverty guidelines.

B. The department shall determine the parent's earned income by subtracting one hundred twenty dollars ($120) and one-third of the remainder from the custodial parent's earned income, or from each parent's earned income in a two-parent family if at least one of them is the custodial parent. Liquid and non-liquid assets owned by the parents shall not be counted in the eligibility determination.

C. The department, after consultation with the legislature or, when it is not in session, with the legislative finance committee and the legislative health and human services committee, may establish different income disregard standards than those provided for in Subsection B of this section for recipients and applicants if the cost of the expanded coverage for certain custodial parents creates budgetary limitations or pressures."

Section 3. APPROPRIATION.--Five million three hundred twenty-two thousand six hundred dollars ($5,322,600) is appropriated from the tobacco settlement program fund to the human services department for expenditure in fiscal year 2002 to match the federal state children's health insurance program funds to expand medicaid coverage to certain custodial parents of medicaid-eligible children. Any unexpended or unencumbered balance remaining at the end of fiscal year 2002 shall revert to the tobacco settlement program fund.