NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Health Policy Commission, Human Services Department

SUMMARY

Synopsis of SPAC Amendment

Senate Public Affairs Committee amendment to Senate Bill 431 changes page 31, line 13 to now read: "persons enrolled in the federal employees health benefits plan or other beneficiaries".

Synopsis of Bill

Senate Bill 431 provides a statewide comprehensive system of health care. In addition, the bill provides for health care planning, establishes procedures to contain health care costs, establishes a new governmental entity, the Health Care Commission and provides for powers and duties of that commission, provides for the creation of health care delivery regions and regional councils, and calls for the development of a statewide health care plan. The bill also provides for the funding of the costs of implementation of this plan.

Significant Issues

Included in this analysis as an addendum is a section by section description of the contents of this bill as prepared by the New Mexico Health Policy Commission. Also included is a table of contents of this bill.

FISCAL IMPLICATIONS

The fiscal implications to state agencies in order to implement the provisions of this bill are as follows:

1. Significant resources of the New Mexico Health Policy Commission will be needed to develop data necessary for the development of financing alternatives. In addition, actuarial analyses will be necessary and must either be contracted for or done with additional resources that are not presently available. The departments of health, human services, general services, Retiree Health Care Authority, Public Employee Retirement Association, and the New Mexico Public Schools Insurance Authority will be impacted by this legislation.

2. Resources of the Insurance Division of the Public Regulation Commission will be necessary to evaluate and estimate actuarial components necessary to estimate the total costs and expenses included in this legislation.

3. The Public Regulation Commission estimates a loss of insurance premium tax revenues of between $11,500,000 and $23,000,000 depending on ERISA plan participation in the state insurance plan.

ADMINISTRATIVE IMPLICATIONS

Administration of the provisions of this legislation will have an impact on the major human service departments of New Mexico state government. The extent of these impacts have not been estimated by those departments at this time.

OTHER SUBSTANTIVE ISSUES

Included as addendum #2 to this analysis is a synopsis of the substantive issues as prepared by the New Mexico Health Policy Commission, The Human Services Department, and the Public Regulation Commission.

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Attachments