HOUSE HEALTH AND GOVERNMENT AFFAIRS COMMITTEE SUBSTITUTE FOR

HOUSE BILL 335

48th legislature - STATE OF NEW MEXICO - first session, 2007

AN ACT

RELATING TO HEALTH INSURANCE; REQUIRING CERTAIN LARGE EMPLOYERS TO REPORT WHETHER THEY PAY THEIR FAIR SHARE OF EMPLOYEE HEALTH CARE COSTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. SHORT TITLE.--This act may be cited as the "Fair Share for Health Care Act".

     Section 2. DEFINITIONS.--As used in the Fair Share for Health Care Act:

          A. "comprehensive major medical insurance" means health insurance covering the reimbursement of hospital, surgical and medical expenses or coverage provided by health maintenance organizations or nonprofit health care plans to provide or reimburse, hospital, surgical and medical services. "Comprehensive major medical insurance" does not include short-term travel, accident-only, limited or specified disease policies that are dental-only or vision-only;

          B. "employee" means an individual employed by an employer such that the employer pays social security withholding, unemployment insurance or workers' compensation insurance for the individual;

          C. "employer" means a person, or an officer, agent or employee of that person, who has control of the payment of wages to an employee in New Mexico and who is doing business in or deriving income from sources within the state and has ten thousand or more employees nationwide, except that "employer" does not include the federal or state government or a political subdivision of the state or another state;

          D. "fair share" means comprehensive major medical insurance;

          E. "health insurance costs" means the amount paid by an employer to provide health care or health insurance to an employee to the extent that the costs may be deductible by the employer under federal tax law and includes payments for medical care, prescription drugs, vision care and medical savings accounts;

          F. "secretary" means the secretary of human services; and

          G. "wages" means remuneration in cash or other form of payment for services performed by an employee for an employer.

     Section 3. REPORTING.--An employer shall:

          A. no later than January 15, 2008 and annually thereafter, make a report stating whether it is offering its employees comprehensive health care coverage to the human services department on a form approved by the secretary that includes:

                (1) the total number of employees on one day selected by the employer in the year immediately preceding the previous calendar year; and

                (2) a summary of the employer's policy on health care coverage eligibility for its employees;

          B. have the report signed by the principal executive officer or that officer's designee with an affidavit under penalty of perjury that the information reported is accurate; and

          C. notwithstanding any other requirements of this section, not be required to file a subsequent report unless it no longer offers its employees comprehensive major medical insurance.

     Section 4. SECRETARY--DUTIES.--The secretary shall

report annually to the governor on or before March 15 of each year, in a publication titled "Fair Share for Health Care", the name of each employer that does not offer comprehensive major medical insurance to employees.

     Section 5. PENALTY.--The secretary may impose a civil penalty of up to two hundred fifty dollars ($250) per day of delay in reporting on an employer that fails to report as required under the Fair Share for Health Care Act.

     Section 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.

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