State of New Mexico
                      House of Representatives
  
                      FORTY-THIRD LEGISLATURE
                        FIRST SESSION, 1997
  
  
                                                    March 6, 1997
  
  
  Mr. Speaker:
  
       Your CONSUMER AND PUBLIC AFFAIRS COMMITTEE, to
  whom has been referred
  
                       HOUSE BILL 1269
  
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1.  On page 3, line 20, after the period strike the remainder
  of the line and strike lines 21 through 25.
  
       2.  On page 4, strike lines 1 through 3 and on line 4, strike
  "organization.".
  
       3.  On page 4, between lines 7 and 8 insert the following new
  subsection:
  
            "H.  "managed health care system" means a delivery system
  of comprehensive coverage providing basic health care and health-
  related services that utilize principles of management, coordination
  and medical review to achieve financial and quality-of-care
  efficiencies in the medicaid program; and that may include the
  development of a primary care network, utilization review
  activities, continuous quality improvement efforts, methods of
  prospective reimbursement, regional purchasing contracts, use of
  provider service networks and incentives to encourage health
  promotion, prevention and financial accountability and prudence;". 
  
       4.  Reletter the succeeding subsections accordingly.
  
       5.  On page 4, line 23, after the period insert:
  
  "The managed health care system for the medicaid program shall be
  operated by the human services department or through managed health
  care plans contracting with the human services department.".
  
       6.  On page 4, line 23, strike "shall" and insert in lieu
  thereof "may".
  
       7.  On page 5, line 4, after "B." strike lines 4 through 6.
  
       8.  On page 5, line 7, strike "program is so extended" and
  insert in lieu thereof "managed health care plan pilot projects are
  extended to other areas of the state".
  
       9.  On page 5, between lines 11 and 12, insert the following
  new subsection:
  
            "C.  The human services department may implement the
  managed health care system by instituting any of the principles of a
  managed health care system on a pilot project test basis.  The
  managed health care system for the medicaid program shall be revised
  as necessary, based on the experiences of the pilot projects.".,  
  
  and thence referred to the BUSINESS AND INDUSTRY
  COMMITTEE.
  
                                Respectfully submitted,
  
  
  
                                                                 
                                                              Gary King, Chairman
  
  
  Adopted                       Not Adopted                       
            (Chief Clerk)                       (Chief Clerk)
  
                         Date             
  
  The roll call vote was 5  For 3  Against
  Yes:      5
            No:       Dana, Johnson, Vaughn
            Excused:  Crook, Rios
            Absent:   None
  
  
  .118128.1
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