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

SPONSOR Martinez

ORIGINAL DATE

LAST UPDATED

1/25/06 HB 118/aHGUAC

SHORT TITLE

MEDICAL OR PREMIUM ASSISTANCE PROGRAM

SB

ANALYST Weber

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

Department of Health (DH)

Aging and Long Term Services Department (ALTSD)

SUMMARY

Synopsis of HGUAC Amendment

The House Government and Urban Affairs Committee make the following changes:

1. On page 1, line 13, strike "PERSONS" and insert in lieu thereof "CHILDREN AND

PREGNANT WOMEN".

2. On page 2, line 4, after "funds" insert "received by the state from public or private grants or

donations".

3. On page 2, line 7, strike "persons" and insert in lieu thereof "children up to the age of

twelve if not part of a sibling group; children up to the age of eighteen if part of a sibling group

that includes a child up to the age of twelve; and pregnant women".

4. On page 2, line 9, strike the quotation mark and insert in lieu thereof:

House Bill 118/aHGUAC – Page 2

"The department, in implementing the provisions of this subsection, shall:

(1) establish rules that encourage pregnant women to participate in prenatal care; and

(2) not provide a benefit package that exceeds the benefit package provided to state

employees."".

The effect of the changes is to limit premium assistance programs to pregnant women, children

up to age 12, or 18 if part of a sibling group that includes a child up to age 12. On page 2, line 4

the addition makes clearer the types of approved fund sources.

The final addition directs HSD to establish rules encouraging pregnant women participate in

prenatal care programs and that any benefit package for premium assistance participate shall not

offer benefits that exceed the state employees’ health insurance benefit provisions.

Synopsis of Original Bill

House Bill 118 proposes that the Medical Assistance Division of the New Mexico Human

Services Department may, by rule, provide medical and premium assistance to persons who are

New Mexico residents and who are ineligible for federal public assistance. The medical and

premium assistance proposed in the bill would be applicable to medical or long-term care

insurance. Any medical or premium assistance subject to the provisions of the bill would depend

on the availability of appropriations and federal, state or other funds.

FISCAL IMPLICATIONS

In the absence of an appropriation there is no direct fiscal implication unless HSD would have

unused funds and budget authority.

SIGNIFICANT ISSUES

The bill would allow HSD to develop rules to pay private health insurance premiums. HSD

reports there are approximately 400,000 uninsured New Mexicans. With such a large uninsured

population a program of this nature would have applicability. If a benefit package such as the

State Coverage Insurance program were used an anticipated premium would be about $300 per

month. This represents a total potential need of $1.4 billion to cover all the uninsured at this

benefit level. The bill does not suggest any eligibility qualifiers such as minimum income the

HSD rules should include. Consideration may be given to including these in the bill to ensure

legislative intent.

MW/nt