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

Feldman

DATE TYPED

1/29/04

HB

 

 

SHORT TITLE

Private Purchase of Health Insurance

SB

SJM 8

 

 

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:  HJM 3

Relates to:   HB 87 and SB 101

 

SOURCES OF INFORMATION

 

Human Services Department

Health Policy Commission

PRC-Insurance Division

 

SUMMARY

 

Synopsis of 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 HJM 3. 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).

 

GG/prr:njw