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F I S C A L I M P A C T R E P O R T
SPONSOR Senate Floor
DATE TYPED 3/17/05
HB
SHORT TITLE Insurance Tax Credit & Eligibility
SB 393/SFlS
ANALYST Wilson
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
$0.1 Recurring
General Fund
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
The Senate Floor Committee Substitute provides for small group coverage in the Medical Insur-
ance Pool (Pool). The substitute gives the Pool board the authority to issue a policy of insurance,
for a small group that is formed voluntarily through an employer, association, cooperative, mu-
tual alliance or other organization; provided, however, that an employer group may not have
more than fifty persons.
The group must be uninsurable as defined in the Medical Insurance Pool Act
Significant Issues
Currently the Pool cannot take high risk groups, but the Alliance can. The Pool insurance is
more comprehensive for groups with disabled member or persons with high prescription drug
usage.
FISCAL IMPLICATIONS
Since the Pool assesses insurers who provide Medicaid coverage through the salud program and
the alliance only assesses private insurers, it is to the State’s financial advantage to put high risk
small groups into the Pool.
pg_0002
Senate Bill 393/aSFC-- Page 2
OTHER SUBSTANTIVE ISSUES
The Pool was created in 1987 by the legislature to offer insurance coverage to individuals
who are unable to purchase coverage due to their health status in either the private or
public markets. These individuals have health conditions such as heart disease, cancer,
diabetes, disabilities, asthma, obesity or arthritis.
The Pool actuarially calculates premiums based on the private individual market. The
Pool is able to charge up to 150% of what our policy would cost if sold by an insurance
company. The Pool currently charges 10% over what the policy would cost in the private
market.
Only 1400 people in New Mexico are currently enrolled in the Pool. .
DW/sb:yr:lg