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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
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F I S C A L I M P A C T R E P O R T
SPONSOR Cisneros
ORIGINAL DATE
LAST UPDATED
02/12/07
HB
SHORT TITLE Health Security Act Financing Options
SB 721
ANALYST Hanika Ortiz
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$500.0
Non-recurring
General fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Companion to SB 720, Health Security Act
SOURCES OF INFORMATION
LFC Files
Public Education Department (PED)
Department of Health (DOH)
SUMMARY
Synopsis of Bill
Senate Bill 721 appropriates $500 thousand from the General Fund to the Legislative Finance
Committee (LFC) for expenditure in FY08 to determine the financing options of the
comprehensive statewide health security plan, contingent upon enactment of the Health Security
Act during the first session of the forty-eighth legislature. Any unexpended or unencumbered
balance remaining at the end of FY08 shall revert to the general fund.
FISCAL IMPLICATIONS
The appropriation of $500 thousand contained in this bill is a non-recurring expense to the
general fund. Any unexpended or unencumbered balance remaining at the end of FY08 shall
revert to the general fund.
The bill requires the LFC develop financing recommendations for the statewide health security
plan proposed in SB 720 and provide such to the legislature for approval or modification before
12/15/07 for consideration by the 2008 Legislature. The LFC is to be guided by the costs of
health care coverage afforded state employees; and, options may set beneficiary income based
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Senate Bill 721 – Page
2
premium payments, sliding scale premium payments and Medicare credits and employer
contributions. The financing recommendations are expected before the commission’s plan for
coverage is known.
Financing options for the health security plan must be determined in order for the Health
Security Act to be implemented. If the Legislature approves implementation and financing of the
plan, the health security plan shall be operational by July 1, 2010; however, if the legislature fails
to approve of it, the health security plan shall not become effective.
SIGNIFICANT ISSUES
Senate Companion Bill 720 enacts the Health Security Act to provide a mandatory
comprehensive statewide health care plan through a combination of public and private financing;
control of health care costs; and, by providing preventative health care for all New Mexicans.
The Act outlines procedures for the implementation of a citizens’ commission of 15 members
reflecting the geographic diversity of the state tasked with establishing the entity for the Health
Security Act by 11/01/08. The commission will have a two-year development period to work
with state agencies and the public; and, collect, review and analyze pertinent health care data to
see whether the plan is financially feasible. The bill requires financing recommendations made
by the LFC be approved by the legislature in 2008 before this plan goes into effect.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
SB 721 is a companion bill to SB 720, which proposes that the Health Security Act provide for
comprehensive statewide health care for all New Mexicans.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
No additional state funding will be available to the LFC for expenditure in FY08 to determine
the financing options of the health security plan, contingent upon enactment of the Health
Security Act during the first session of the forty-eighth legislature.
AHO/nt