SENATE JOINT MEMORIAL 41

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

INTRODUCED BY

Steve Komadina

FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE

A JOINT MEMORIAL

REQUESTING THE DEPARTMENT OF HEALTH AND THE TAXATION AND REVENUE DEPARTMENT TO STUDY THE COST AND BENEFITS OF PROVIDING TAX RELIEF TO PARTIALLY DEFRAY THE COSTS OF LIABILITY INSURANCE FOR CERTAIN HEALTH CARE PROFESSIONALS.

     WHEREAS, New Mexico is experiencing serious shortages of health care professionals, including physicians, nurses, nurse practitioners, physician assistants, dentists and dental hygienists; and

     WHEREAS, among the reasons for these shortages is the high cost of purchasing malpractice liability insurance, while reimbursement for services is lower than in other states; and

     WHEREAS, many physicians and other health care providers find the cost of malpractice liability insurance increasingly difficult to afford, even though New Mexico's malpractice system is exemplary and copied in other states; and

     WHEREAS, health care professionals cannot practice without malpractice and other liability insurance; and

     WHEREAS, these costs can have an impact on a health care professional's ability to continue practicing, particularly in rural areas or areas serving low-income populations; and

     WHEREAS, favorable tax policies, including refundable tax credits or tax deductions, can have the effect of encouraging health care professionals to come to, stay in and practice in New Mexico, especially in rural areas, and to serve medicare and medicaid clients;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the department of health and the taxation and revenue department be requested to cooperate in a study of the cost and benefits of providing refundable tax credits or state income tax deductions to partially defray the costs of obtaining professional liability insurance for the health care professionals in shortest supply in New Mexico; and

     BE IT FURTHER RESOLVED that the study consider the impact of such favorable tax policies on both recruitment and retention of health care professionals in New Mexico; and

     BE IT FURTHER RESOLVED that the study consider the number and types of health care professionals who could potentially benefit from such a tax policy and the amount of a credit or deduction that would be necessary to achieve the desired result; and

     BE IT FURTHER RESOLVED that the department of health and the taxation and revenue department seek input from health professional associations and other appropriate parties in developing recommendations; and

     BE IT FURTHER RESOLVED that the departments report their findings, including legislative recommendations, 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 sent to the secretary of health and the secretary of taxation and revenue.

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