HOUSE JOINT MEMORIAL 69

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Ron Godbey

FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE

A JOINT MEMORIAL

REQUESTING THE NEW MEXICO HEALTH POLICY COMMISSION TO EXPLORE THE BENEFIT AND COST OF STATE-SPONSORED REINSURANCE FOR CERTAIN HEALTH INSURANCE LOSSES FOR SMALL BUSINESSES.

     WHEREAS, the cost of health insurance is skyrocketing, rising by double-digit percentages every year for most New Mexicans; and

     WHEREAS, small businesses are heavily impacted by the rising cost of health insurance, and are finding it increasingly difficult to offer health insurance benefits to their employees; and

     WHEREAS, New Mexico has one of the highest rates of uninsured in the nation, estimated at twenty-two percent of the population of the state, or in excess of four hundred thousand New Mexicans; and

     WHEREAS, one factor contributing to the high cost of health insurance is the possibility of catastrophic health events, or long-term, chronic events that exceed the amount collected in premiums for that group or individual; and

     WHEREAS, small businesses are more vulnerable to this type of risk since they have too few employees to offset potential losses should one employee experience excessively high medical costs; and

     WHEREAS, small businesses lack the ability to self-insure, due to size; and

     WHEREAS, health insurance companies might be more willing to provide health insurance to small businesses at an affordable premium if the risk of extraordinary loss was adequately insured; and

     WHEREAS, in New York state, where state-sponsored reinsurance is provided under certain conditions, small business insurance premiums have been reduced by up to thirty-six percent on certain products sold;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the New Mexico health policy commission, with the cooperation of the insurance division of the public regulation commission, be requested to explore the benefit and cost of state-sponsored reinsurance for extraordinary health insurance losses for small businesses; and

     BE IT FURTHER RESOLVED that the study examine the potential for increased access to New Mexico health policy commission by small businesses in New Mexico, as well as the overall impact on the uninsured; and

     BE IT FURTHER RESOLVED that the New Mexico health policy commission report its findings to the interim legislative health and human services committee at its October 2004 meeting; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the New Mexico health policy commission and the superintendent of insurance at the public regulation commission.

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