SM 3 — STUDY NM MEDICAID BUY-IN PLANS

SENATE MEMORIAL 3 53RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2018 INTRODUCED BY Gerald Ortiz y Pino 6 8 10 A MEMORIAL REQUESTING THE NEW MEXICO LEGISLATIVE COUNCIL TO CHARGE THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE WITH EXPLORING THE POLICY AND FISCAL IMPLICATIONS OF OFFERING A MEDICAID BUY-IN PLAN TO NEW MEXICO RESIDENTS TO INCREASE LOW-COST HEALTH CARE COVERAGE OPTIONS;

REQUESTING THE OFFICE OF SUPERINTENDENT OF INSURANCE, THE HUMAN SERVICES DEPARTMENT AND OTHER HEALTH-HEALTH-RELATED e t 17 RELATED AGENCIES AND ENTITIES TO PROVIDE HEALTH PLAN COST AND w l n d 18 COVERAGE INFORMATION TO THE LEGISLATIVE HEALTH AND HUMAN = = 19 a l SERVICES COMMITTEE.

i a e r 20 a t m m 21 WHEREAS, everyone in New Mexico deserves access to d r e 22 affordable, high-quality health care coverage for the c e s k 23 well-being of families and economic prosperity;

and e a n b 24 WHEREAS, New Mexico made tremendous gains in health care u [ coverage through the federal Patient Protection and Affordable .209299.2 Care Act, primarily by expanding medicaid coverage to more than two hundred fifty thousand low-income adults;

and WHEREAS, the majority of people who remain uninsured earn incomes less than two hundred percent of the federal poverty level and many work in jobs that do not provide SM 3 health insurance;

and Page 1 WHEREAS, according to surveys by the New Mexico health insurance exchange and national research groups, health insurance costs are routinely cited as the number-one reason why New Mexicans remain uninsured;

and WHEREAS, fifty-three percent of low-income adults who have e e 17 private health insurance through their employers, the e e n d 18 marketplace or individual coverage and whose incomes are below = = l ] 19 two hundred percent of the federal poverty level have health a l r i 20 care costs that the commonwealth fund's health care t e a t affordability index deems to be "unaffordable";

and m m 21 e d r e 22 WHEREAS, New Mexicans who are uninsured or underinsured c e r c 23 must often forego needed medical services, have less access to e a n b 24 preventive care and behavioral health services and may be u [ forced to wait until medical conditions worsen into expensive .209299.2 - 2 - and sometimes untreatable emergencies;

and WHEREAS, uncompensated health care costs are shifted to health care providers, health insurance plans and taxpayers, SM 3 Page 2 resulting in higher insurance premiums and health system costs;

and WHEREAS, medicaid is a cost-effective health coverage e e 17 model that provides comprehensive health benefits for lower e e n d 18 costs than private insurance plans;

and = = l ] 19 WHEREAS, New Mexico can allow state residents who are a l r i 20 currently not eligible for medicaid the option to buy into a t e a t health coverage plan that is administered by medicaid by m m 21 e d r e 22 applying for a federal innovation waiver;

and c e r c 23 WHEREAS, offering a medicaid buy-in health coverage plan e a n b 24 in the state's insurance market increases choices for low-cost, u [ high-quality health plans that New Mexicans can purchase using .209299.2 - 3 - federal tax credits and subsidies that are available to low-low-income income and middle-income households for health insurance;

and WHEREAS, the costs to the state of administering a medicaid buy-in coverage plan are likely to be minimal by SM 3 Page 3 realizing potential savings in health system costs and maximizing federal financial subsidies available to individuals to purchase insurance;

and WHEREAS, two bills were recently introduced in the United States congress, including the State Public Option Act and the Health Care Choice and Affordability Act, that would permit states to provide medicaid as a buy-in coverage option for their residents to purchase without the need to apply for a e e 17 federal waiver;

and e e n d 18 WHEREAS, New Mexico is well-positioned to lead the country = = l ] 19 in offering a health coverage plan to buy through medicaid, a l r i 20 with nearly three-fourths of the state's population already t e a t covered by public health coverage programs, including medicaid, m m 21 e d r e 22 medicare, state employee plans and military coverage;

c e r c 23 NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE e a n b 24 OF NEW MEXICO that an opportunity to potentially lower health u [ care costs and expand affordable coverage by offering state .209299.2 - 4 - residents who are not eligible for medicaid the choice of buying into a health care coverage plan administered by medicaid be recognized;

and SM 3 Page 4 BE IT FURTHER RESOLVED THAT the New Mexico legislative council be requested to charge the legislative health and human services committee with exploring the policy and fiscal implications of offering a medicaid buy-in coverage option to New Mexico residents by seeking public feedback and evaluating health plan costs of private insurance compared to medicaid managed care plans, administrative feasibility, the impact on health care stakeholders and patients and methods to ensure health care coverage is expanded to low-income, uninsured residents;

New Mexico e e 17 health insurers;

and health care providers be requested to e e n d 18 provide health plan cost and coverage information to the = = l ] 19 legislative health and human services committee as needed;

and a l r i 20 BE IT FURTHER RESOLVED that copies of this memorial be t e a t transmitted to the governor, the president pro tempore of the m m 21 e d r e 22 senate, the speaker of the house of representatives, the chair c e r c 23 and vice chair of the legislative health and human services e a n b 24 committee, the superintendent of insurance, the secretary of u [ human services and the executive director of the New Mexico .209299.2 - 5 - health insurance exchange.

-SM 63 -Page 45 625 8 10 12 14 16 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .209299.2