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
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SPONSOR |
Beffort |
DATE TYPED |
|
HB |
|
||
|
SHORT
TITLE |
Impact of Health Insurance Tax Credits |
SB |
SJM 19 |
||||
|
|
ANALYST |
Chabot |
|||||
APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY04 |
FY05 |
FY04 |
FY05 |
||
|
|
None |
|
See
Narrative |
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates
to SB 132, Employee Health Insurance Premium Tax Credit
LFC Files
Responses
Received From
Department
of Health (DOH)
Human
Services Department (HSD)
Public
Regulatory Commission (PRC)
Public
School Insurance Authority (PSIA)
Regulation
and Licensing Department (RLD)
Retiree
Health Care Authority (RHCA)
SUMMARY
Synopsis of Bill
Senate Joint Memorial resolves that the New
Mexico Health Policy Commission (HPC), in cooperation with the Insurance
Division of the Public Regulatory Commission (PRC) and the Taxation and Revenue
Department (TRD), conduct a study of the impact of providing refundable tax
credits for low-income persons based on the amount spent on health insurance. It further requests a study of the various
options, how large a credit is needed, and whether the credit should be for all
health insurance premiums or have restrictions based upon income. HPC is to report the findings to the interim
Legislative Health and Human Services Committee during the October 2004 meeting.
Significant Issues
Approximately 22 percent of New Mexicans do not
have health insurance, in large part due to the high cost of health insurance. DOH states this is the highest rate in the
nation. HPC’s
March 2000 study entitled Health Care
Coverage and Access in New Mexico found that of those without health
insurance, one-third of the respondents stated they could not afford the high
cost. The second most reported reason
was the employer did not provide it. Tax
credits have been suggested as one of the proposals to increase health
insurance coverage.
In addition to agencies identified in the Joint
Memorial, DOH and HSD would like to participate.
FISCAL IMPLICATIONS
The Joint Memorial does not contain are
appropriation to fund the proposed study.
Participating agencies would have to absorb any associated costs within
the agency appropriated budget.
ADMINISTRATIVE IMPLICATIONS
HPC states “The intent
of this Memorial is well within the statutory scope and interest of the Health
Policy Commission. However, reductions
in the HPC’s budget for FY04, may make it difficult
for HPC staff to participate in this Memorial and at the same time continue to
fulfill the agency’s statutory obligations, which must take
precedence….Administrative impact to the Health Policy Commission is dependent
on the degree of agency participation in this and other proposed Memorials.”
POSSIBLE QUESTIONS
GAC/yr:lg