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

SPONSOR Arnold-Jones

DATE TYPED 03-02-05 HB 967

SHORT TITLE Study Use of Lactation Consultants

SB

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$250.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the appropriation to the University of New Mexico in the General Appropriations Act.

SOURCES OF INFORMATION

LFC Files

Response Received From

New Mexico Health Policy Commission (HPC)

New Mexico Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

House Bill 967 – Making an Appropriation for a Study on the Use of Lactation Consultants in

the Neonatal Intensive Care Unit at the University of New Mexico – appropriates $250,000 from

the general fund to the Board of Regents of the University of New Mexico for expenditure in

FY06 for the neonatal intensive care unit of the University of New Mexico to conduct a study on

the use of lactation consultants, to provide breast pumps to mothers, to reduce infant mortality

and to reduce Mdicaid costs for mothers of premature babies. Any unexpended or unencumbered

balance remaining at the end of FY06 shall revert to the general fund.

Significant Issues

HPC observes that – from the legislation’s present language – it is unclear if the expenditures

would go toward:

1. conducting a study to determine if infant mortality and Medicaid costs would be

reduced with the utilization of lactation consultants and the distribution of breast

pumps to mothers of premature babies; or

House Bill 967 -- Page 2

2. if expenditures would be spent in conducting a study which would include

studying the utilization of lactation consultants, and the cost of providing breast

pumps, and reducing infant mortality and reducing Medicaid costs.

This program was not included in the CHE’s 2005-2006 Higher Education Funding Recommen-

dation.

FISCAL IMPLICATIONS

The appropriation of $250,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

ADMINISTRATIVE IMPLICATIONS

HPC poses the question, “Would the UNM lactation consultant serve only low-income women,

or all women who have been deemed as benefiting from the program.”

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to the appropriation to the University of New Mexico in the General Appropriations Act.

OTHER SUBSTANTIVE ISSUES

HPC notes that nearly 40,000 children – of which more than 50 percent live outside of the Albu-

querque area or out of state – are treated annually at UNM Children’s Hospital. The neonatal

intensive care unit has provided services for about 10,000 critically ill children and their families

over the past 23 years, and the provision of lactation consultants to mothers of premature babies

falls under UNM Hospitals’ mission of health promotion.

HPC suggests that culturally appropriate education for mothers who may not have knowledge of,

or experience with nursing could encourage breastfeeding and could subsequently boost the

newborn’s immune system and reduce the infant’s susceptibility to various illnesses. Further,

that breastfeeding also provides mothers with health benefits and could potentially reduce the

risk of ovarian and breast cancer.

HPC adds that, although lactation consultants do not need to be nurses, they must be certified

with intensive educational training in order to practice. Fees for lactation consultants vary by

geographic location, and can cost from $25 to $100 per hour and often include the provision of

breast pumps, undergarments and other accessories. While the La Leche League is comprised of

volunteers that assist mothers during their normal course of breast-feeding, mothers with prema-

ture and high-risk newborns may need help that the La Leche League cannot provide and are re-

ferred to lactation consultants. However, it should be noted that not all insurances provide cov-

erage for the lactation consultant services.

BFW/yr