02/06/2008
CS/HB 62 -- Health Solutions New Mexico Act -- HHGAC(6-0)/HAFC/HJC -- Heaton
Original governors plan: Required an employer-based approach to achieving universal health care; requires employers to offer healthcare or pay a per-employee penalty regardless of whether that employee has coverage through a different public or private entity; starting in 2009, companies of six or more employees are required to contribute a fee of $500 per employee into the Healthy New Mexico Workforce Fund; companies will contribute $250 per each part time employee; a part time employee is one who works less than 20 hours per week; fees are attached to the Medical price index and are expected to rise; starting in 2010, companies with any employees would face the same requirements An individual who works for greater than 60 days shall be considered an employee. If a company offers health care, the total cost of that coverage may be deducted from the total amount assessed, all companies, regardless of size must offer a pre-tax healthcare option to be administered by the employer; employers will be required to collect and report information about the health coverage of its employee. Required individual mandates -- if make 400 percent above poverty level would have been required to have individual healthcare and show proof of such at time of license renewal. Health coverage authority included executive director appointed by governor.
HHGAC Committee Substitute (draft 2):
- Removed all employer reporting requirements.
- Extended time period for work for employee status to 90 days.
- Attached employer mandated fees to Consumer price index rather than Medical price index.
HHGAC Committee Substitute (draft 3): Amendments sponsored by Rep. Justine Fox-Young accepted by committee on 4-2 vote; the bill with the amendments passed the committee on a 6-0 vote.
- Removed employer mandates -- requirements to pay $500 for full time and $250 for part time employees; left requirement of offering pre-tax option to employees but still do not have to pay for plan only administration.
- Removed all individual mandates regardless of income levels requiring a comprehensive study to determine cost and feasibility.
- Removed authority to appoint executive director from governor.
HAFC Committee Substitute (draft 4):
- Clarified time period for employee status to 90 consecutive days.
- Retained all changes from draft 3.
An additional set of amendments have been drafted by the Department of Human Services who intended to get them on the bill in the House Appropriations Committee. Chairman Saavedra, after consultation with Rep. Wirth and the committee, refused to accept the amendments therefore the Department will attempt to add them in House Judiciary on Monday Feb. 4. The proposed amendments include:
- Appointment of the executive director by the governor.
- Re-impose $500 for full time employee and $250 for part time employee; for first year only for companies with at least 3 employees; for the second year for companies with any employees. A possible phase in was discussed to allow for 3 year grace for the smaller companies.
- Re-impose the individual mandates but include a study on feasibility and cost.
- Require insurance companies who cannot control costs by limiting administrative costs to 15 percent not to be penalized by PRC, but will be allowed to contribute to the Healthy New Mexicans funds in the amount of the percentage difference.
HB 147/a -- Health Care Authority Act HHGAC(8-0)/HAFC/HJC -- Picraux
SB 225 -- SCC/SPAC(5-2)/SJC -- Feldman
The Health Care Authority Act created an 11-member board to oversee health care policy for universal health care; the HCA would have no rule making authority and is meant to be only a policy body -- not dissimilar to the current Health Policy Commission; the cost of this now policy making body is unknown, as is the extent of authority to create guidelines and standards to implement policy. There is no specific burden on small businesses, but the bill is still vague as to whether additional taxes etc. will be placed on employers. Several pieces of this legislation have been absorbed by the governor's legislation (HB 62). As amended, this legislation allows the board of directors of the health care authority to appoint the director, and requires that a licensed physician be included in the board. This legislation was pulled into the House Judiciary Committee along with HB 62 for a legal review of the bill.
HB 214 -- Health Security Act -- Single payer plan HHGAC(6-0)/HJC/HAFC -- Gonzales
SB 4 -- SCC/SFC -- Cisneros
The Health Security Act is a government-based approach to providing universal health care, proposes a single-payer system, which designates one entity, the Health Care Commission, to act as administrator or "payer" for all health care costs; by putting all New Mexicans in one insurance pool, this proposal cuts out private insurance; has been offered as an alternative to fixing the current system with escalating health care premiums affecting small businesses; questions about the cost and budget obligations of a single-payer system remain unanswered. This measure has failed several times in previous sessions but is now the strongest opposing legislation to the Governor's Health Care Solutions Plan (HB 62). HB 214 passed HHGAC without recommendation.
