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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Department of Health, New Mexico Health Policy Commission

SUMMARY

Synopsis of Bill

House Bill 844 appropriates 4,600.0 from the general fund to the Department of Health in FY 2000 to provide prenatal medical services to all uninsured residents of New Mexico.

Significant Issues

At the present time in New Mexico, a significant number (28%) of adults in the 19-64 year age group are uninsured. Also, only 51% of employers in New Mexico offer health insurance to their employees. Recent data demonstrates that approximately 50% of all births in New Mexico are to medicaid eligible women. Two-thirds of the remaining births are covered by third party insurance which leaves approximately 1/3 of the remaining ½ of the births uninsured or approximately 4550 births of the 28,000 births to New Mexican mothers are uninsured. The term prenatal care is defined for the purposes of this analysis to include all prenatal visits as well as the cost of delivery and hospital charges. It is estimated that 21 visits before birth is a reasonable number that would provide adequate care and evaluation of the pregnancy. Hospital and physician delivery charges are estimated to cost $2,500.00 for a total prenatal charge for an average normal delivery of approximately $3,500.00. Using these calculations, it can be seen that the proposed appropriation will cover approximately 1,300 uninsured births. If delivery and hospital costs are subtracted, the appropriation will provide for 4,600 prenatal cases, or all of the uninsured prenatal care visits in the state.

FISCAL IMPLICATIONS

There is a need to identify the proposed beneficiaries of this legislation. A significant number will be seen at the primary care centers and at private physician offices. The Department of Health will need to develop an identification and nomination system to track and pay for these clients.

ADMINISTRATIVE IMPLICATIONS

Administration of these monies will require additional resources in order to establish a payment system, an accounting system and fiscal control system.

TECHNICAL ISSUES

This program will be difficult to implement without a mechanism to identify and track the individual beneficiaries of these monies.

MB/njw