Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us). Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

F I S C A L I M P A C T R E P O R T

SPONSOR	Picraux		DATE TYPED	2/05/04		HB	HJM 3/aHBIC
SHORT TITLE		Private Purchase of Health Insurance				SB
					ANALYST		Geisler

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY04	FY05	FY04	FY05
			See Narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates: SJM 8

Relates to : HB 87 and SB 101

SOURCES OF INFORMATION

Human Services Department

Health Policy Commission

PRC-Insurance Division

SUMMARY

Synopsis of HBIC Amendments

The House Business and Industry Committee amendment to HJM 3 on page 2, line 10 strikes “incomes” and inserts in lieu thereof “expenses.” This clarifies that health care insurance and health care costs make up a increasing share of employee and employer expenses.

Synopsis of Original Bill

The memorial calls for the Human Services Department and the Health Policy Commission, with the cooperation of the Insurance Division and the Risk Management Division, to “study the potential effects and methods of authorizing private businesses and individuals to join a public health insurance purchasing collaborative.” The study is to address the effect on the number of uninsured, the growth in health insurance costs, the effects on the business community and the effects on the private group and individual insurance markets. The analysis is to include input from key stakeholders and a final report with legislative recommendations would be due by December 2004.

Significant Issues

The analysis called for by this memorial was one of the recommendations of the Governor’s Health Care Coverage and Access Task Force.

FISCAL IMPLICATIONS

The Human Services Department states that it has received federal grant money to study the uninsured. Part of these funds would be used to perform this analysis and produce this report.

DUPLICATION and RELATIONSHIP

Duplicates SJM 8. Relates to SB 101 and HB 87 that would establish an expanded public agency purchasing pool for health care benefits initially to public employees and retirees, but potentially could be expanded to private companies and citizens.

OTHER SUBSTANTIVE ISSUES

HPC provides that the potential ability of the private sector and individuals to increase their purchase power by enabling this segment of the New Mexican population to join a public purchasing cooperative has enormous economic effects. It could:

· Lower the cost of insurance.

· Reduce the number of working uninsured.

· Allow economic growth in the small business sector through

the ability to reducing employee turnover. (Small businesses lose

employees to larger employers who can offer benefits. Therefore, the

added cost of retraining is enormous.)

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