New Mexico 2019 Regular Session Status: Enacted

SB 294 — HEALTH INSURANCE EXCHANGE BOARD REPORTING

Last action — Signed

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 22, 2019. Enacted.

Prognosis

Advancing 50% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

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Bill Text

What changed in the latest version

293 added · 440 removed

Plain-language change summary

The updated version of Bill SB 294 removes references to the Audit Act and focuses solely on improving accountability and reporting for the New Mexico Health Insurance Exchange's board and staff. This change is important because it clarifies the bill's intention to enhance transparency and oversight specific to health insurance operations, rather than extending to broader auditing requirements. By streamlining the scope, the bill aims to strengthen governance within the health exchange, which could lead to better management of health insurance access in New Mexico.

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SENATE BILL 294 54TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2019 INTRODUCED BY Mary Kay Papen 6 8 10 AN ACT RELATING TO INSURANCE;
AN ACT RELATING TO INSURANCE;
AMENDING SECTIONS OF THE AUDIT ACT AND THE NEW MEXICO HEALTH INSURANCE EXCHANGE ACT TO ESTABLISH ADDITIONAL REPORTING AND ACCOUNTABILITY REQUIREMENTS FOR THE 14 BOARD OF DIRECTORS AND STAFF OF THE NEW MEXICO HEALTH INSURANCE EXCHANGE.
AMENDING SECTIONS OF THE NEW MEXICO HEALTH INSURANCE EXCHANGE ACT TO ESTABLISH ADDITIONAL REPORTING AND ACCOUNTABILITY REQUIREMENTS FOR THE BOARD OF DIRECTORS AND STAFF OF THE NEW MEXICO HEALTH INSURANCE EXCHANGE.
e t 17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
w l n d 18 SECTION 1.
SECTION 1.
Section 12-6-2 NMSA 1978 (being Laws 1969, = = 19 Chapter 68, Section 2, as amended) is amended to read:
Section 59A-23F-3 NMSA 1978 (being Laws 2013, Chapter 54, Section 3) is amended to read:
a l i a e r 20 "12-6-2.
"59A-23F-3.
DEFINITIONS.--As used in the Audit Act:
NEW MEXICO HEALTH INSURANCE EXCHANGE CREATED--BOARD CREATED.-- A.
a t m m 21 A.
The "New Mexico health insurance exchange" is created as a nonprofit public corporation to provide qualified individuals and qualified employers with increased access to health insurance in the state and shall be governed by a board of directors constituted pursuant to the provisions of the New Mexico Health Insurance Exchange Act.
"agency" means:
The exchange is a governmental entity for purposes of the Governmental Conduct Act, the Gift Act, the Sunshine Portal Transparency Act, the Whistleblower Protection Act, the Procurement Code and the Tort Claims Act, and neither the exchange nor the board shall be considered a governmental entity for any other purpose.
d r e 22 (1) any department, institution, board, c e s k 23 bureau, court, commission, district or committee of the e a n b 24 government of the state, including district courts, magistrate u [ or metropolitan courts, district attorneys and charitable .211923.1 institutions for which appropriations are made by the legislature;
SB 294 B.
(2) any political subdivision of the state, created under either general or special act, that receives or expends public money from whatever source derived, including counties, county institutions, boards, bureaus or commissions;
The exchange shall not duplicate, impair, Page 1 enhance, supplant, infringe upon or replace, in whole or in any part, the powers, duties or authority of the superintendent, including the superintendent's authority to review and approve premium rates pursuant to the provisions of the New Mexico Insurance Code.
municipalities;
drainage, conservancy, irrigation or other special districts;
and school districts;
(3) any entity or instrumentality of the state specifically provided for by law, including the New Mexico finance authority, the New Mexico mortgage finance authority, [and] the New Mexico lottery authority and the New Mexico health insurance exchange;
and (4) every office or officer of any entity listed in Paragraphs (1) through (3) of this subsection;
and B.
"local public body" means a mutual domestic e e 17 water consumers association, a land grant, an incorporated e e n d 18 municipality or a special district." = = l ] 19 SECTION 2.
Section 59A-23F-3 NMSA 1978 (being Laws 2013, a l r i 20 Chapter 54, Section 3) is amended to read:
t e a t "59A-23F-3.
NEW MEXICO HEALTH INSURANCE EXCHANGE m m 21 e d r e 22 CREATED--BOARD CREATED.-- c e r c 23 A.
The "New Mexico health insurance exchange" is e a n b 24 created as a nonprofit public corporation to provide qualified u [ individuals and qualified employers with increased access to .211923.1 - 2 - health insurance in the state and shall be governed by a board of directors constituted pursuant to the provisions of the New Mexico Health Insurance Exchange Act.
The exchange is a governmental entity for purposes of the Audit Act, the Governmental Conduct Act, the Gift Act, the Sunshine Portal 6 Transparency Act, the Whistleblower Protection Act, the Procurement Code and the Tort Claims Act, and neither the exchange nor the board shall be considered a governmental entity for any other purpose.
B.
The exchange shall not duplicate, impair, enhance, supplant, infringe upon or replace, in whole or in any part, the powers, duties or authority of the superintendent, including the superintendent's authority to review and approve premium rates pursuant to the provisions of the New Mexico Insurance Code.
The exchange shall not purchase qualified health e e 17 plans from insurance health issuers to offer for purchase e e n d 18 through the exchange.
The exchange shall not purchase qualified health plans from insurance health issuers to offer for purchase through the exchange.
= = l ] 19 D.
D.
All health insurance issuers and health a l r i 20 maintenance organizations authorized to conduct business in t e a t this state and meeting the requirements of the rules m m 21 e d r e 22 promulgated by the superintendent pursuant to Section [7 of the c e r c 23 New Mexico Health Insurance Exchange Act] 59A-23F-7 NMSA 1978, e a n b 24 as well as meeting the rules under the federal act, shall be u [ eligible to participate in the exchange.
All health insurance issuers and health maintenance organizations authorized to conduct business in this state and meeting the requirements of the rules promulgated by the superintendent pursuant to Section 59A-23F-7 NMSA 1978, as well as meeting the rules under the federal act, shall be eligible to participate in the exchange.
.211923.1 - 3 - E.
E.
and (3) six voting directors, three appointed by the president pro tempore of the senate, including one health care provider, and three appointed by the speaker of the house of representatives, including one health insurance issuer.
and (3) six voting directors, three appointed by SB 294 Page 2 the president pro tempore of the senate, including one health care provider, and three appointed by the speaker of the house of representatives, including one health insurance issuer.
One of the directors appointed by the president pro tempore of the senate and one of the directors appointed by the speaker of the house of representatives shall be from a list of at least two e e 17 candidates provided, respectively, by the minority leader of e e n d 18 the senate and by the minority leader of the house of = = l ] 19 representatives.
One of the directors appointed by the president pro tempore of the senate and one of the directors appointed by the speaker of the house of representatives shall be from a list of at least two candidates provided, respectively, by the minority leader of the senate and by the minority leader of the house of representatives.
a l r i 20 F.
F.
Except as provided in Subsection G of this t e a t section, managerial and full-time staff of the exchange shall m m 21 e d r e 22 be subject to applicable provisions of the Governmental Conduct c e r c 23 Act and shall not have any direct or indirect affiliation with e a n b 24 any health care provider, health insurance issuer or health u [ care service provider.
Except as provided in Subsection G of this section, managerial and full-time staff of the exchange shall be subject to applicable provisions of the Governmental Conduct Act and shall not have any direct or indirect affiliation with any health care provider, health insurance issuer or health care service provider.
.211923.1 - 4 - G.
G.
Each director shall comply with the conflict-of- interest provisions of Subsection F of this section, except as follows:
Each director shall comply with the conflict-of-interest provisions of Subsection F of this section, except as follows:
(2) the secretary of human services, or the secretary's designee, shall not be considered to have a conflict of interest with respect to the secretary's performance of the secretary's duties as secretary of human services;
(2) the secretary of human services, or the secretary's designee, shall not be considered to have a SB 294 Page 3 conflict of interest with respect to the secretary's performance of the secretary's duties as secretary of human services;
(3) the director who is a health care provider shall not be considered to have a conflict of interest arising from that director's receipt of payment for services as a e e 17 health care provider;
(3) the director who is a health care provider shall not be considered to have a conflict of interest arising from that director's receipt of payment for services as a health care provider;
and e e n d 18 (4) directors who are representatives of = = l ] 19 health insurance issuers shall not be considered to have a a l r i 20 conflict of interest with respect to those directors' t e a t association with their respective health insurance issuers.
and (4) directors who are representatives of health insurance issuers shall not be considered to have a conflict of interest with respect to those directors' association with their respective health insurance issuers.
m m 21 e d r e 22 H.
H.
Each director and employee of the exchange shall c e r c 23 have a fiduciary duty to the exchange, to the state and to e a n b 24 those persons who purchase or enroll in qualified health plan u [ coverage or medical assistance coverage through the exchange.
Each director and employee of the exchange shall have a fiduciary duty to the exchange, to the state and to those persons who purchase or enroll in qualified health plan coverage or medical assistance coverage through the exchange.
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.211923.1 - 5 - I.
I.
(2) purchasing coverage in the small employer market;
(2) purchasing coverage in the small SB 294 Page 4 employer market;
e e 17 (7) administration of a private or public e e n d 18 health care delivery system;
(7) administration of a private or public health care delivery system;
= = l ] 19 (8) information technology;
(8) information technology;
a l r i 20 (9) starting a small business with fifty or t e a t fewer employees;
(9) starting a small business with fifty or fewer employees;
or m m 21 e d r e 22 (10) provision of health care services.
or (10) provision of health care services.
c e r c 23 K.
K.
The governor shall appoint no more than four e a n b 24 directors from the same political party.
The governor shall appoint no more than four directors from the same political party.
u [ L.
L.
Except for the secretary of human services, the .211923.1 - 6 - non-health insurance issuer directors appointed by the governor shall be appointed for initial terms of three years or less, staggered so that the term of at least one director expires on June 30 of each year.
Except for the secretary of human services, the non-health insurance issuer directors appointed by the governor shall be appointed for initial terms of three years or less, staggered so that the term of at least one director expires on June 30 of each year.
The health insurance issuers appointed to the board shall, upon appointment, select one of them by lot to have an initial term ending on June 30 following one year of service and one to have an initial term ending on June 30 following two years of service.
The health insurance issuers appointed to the board shall, upon appointment, select one of them by lot to SB 294 Page 5 have an initial term ending on June 30 following one year of service and one to have an initial term ending on June 30 following two years of service.
Health insurance issuer directors shall not serve two e e 17 consecutive terms.
Health insurance issuer directors shall not serve two consecutive terms.
e e n d 18 M.
M.
The exchange and the board shall operate = = l ] 19 consistent with provisions of the Governmental Conduct Act, the a l r i 20 Inspection of Public Records Act, the Financial Disclosure Act, t e a t the Gift Act, the Whistleblower Protection Act , [and] the Open m m 21 e d r e 22 Meetings Act and the Procurement Code and shall not be subject c e r c 23 to [the Procurement Code or ] the Personnel Act.
The exchange, members of the board and employees of the exchange shall operate consistent with provisions of the Governmental Conduct Act, the Inspection of Public Records Act, the Financial Disclosure Act, the Gift Act, the Whistleblower Protection Act, the Open Meetings Act and the Procurement Code and shall not be subject to the Personnel Act.
e a n b 24 N.
N.
The board and the exchange shall implement u [ performance-based budgeting and submit annual budgets for the .211923.1 - 7 - exchange to the secretary of finance and administration and the legislative finance committee.
The board and the exchange shall implement performance-based budgeting and submit annual budgets for the exchange to the secretary of finance and administration and the legislative finance committee.
The exchange shall cover its directors and employees under a surety bond, in an amount that the director of the risk management division of the general services 6 department shall prescribe.
The exchange shall cover its directors and employees under a surety bond, in an amount that the director of the risk management division of the general services department shall prescribe.
[N.] P.
P.
The board may allow members to attend meetings by telephone or other electronic media.
The board may allow members to attend meetings by telephone SB 294 Page 6 or other electronic media.
[O.] Q.
Q.
e e 17 Thereafter, every three years, the board shall elect in open e e n d 18 meeting a chair and vice chair from among the directors.
Thereafter, every three years, the board shall elect in open meeting a chair and vice chair from among the directors.
The = = l ] 19 chair and vice chair shall serve no more than two consecutive a l r i 20 three-year terms as chair and vice chair.
The chair and vice chair shall serve no more than two consecutive three-year terms as chair and vice chair.
t e a t [P.] R.
R.
A vacancy on the board shall be filled by m m 21 e d r e 22 appointment by the original appointing authority for the c e r c 23 remainder of the director's unexpired term.
A vacancy on the board shall be filled by appointment by the original appointing authority for the remainder of the director's unexpired term.
e a n b 24 [Q.] S.
S.
A director may be removed from the board by u [ a two-thirds majority vote of the directors.
A director may be removed from the board by a two-thirds majority vote of the directors.
The board shall .211923.1 - 8 - set standards for attendance and may remove a director for lack of attendance, neglect of duty or malfeasance in office.
The board shall set standards for attendance and may remove a director for lack of attendance, neglect of duty or malfeasance in office.
[R.] T.
T.
Appointed directors may receive per diem and mileage in accordance with the Per Diem and Mileage Act, subject to the travel policy set by the board.
Appointed directors may receive per diem and SB 294 Page 7 mileage in accordance with the Per Diem and Mileage Act, subject to the travel policy set by the board.
[S.] U.
U.
There shall be sufficient notice provided to the public prior e e 17 to meetings pursuant to the Open Meetings Act;
There shall be sufficient notice provided to the public prior to meetings pursuant to the Open Meetings Act;
e e n d 18 (2) create, make appointments to and duly = = l ] 19 consider recommendations of an advisory committee or committees a l r i 20 made up of stakeholders, including health insurance issuers, t e a t health care consumers, health care providers, health care m m 21 e d r e 22 practitioners, brokers, qualified employer representatives and c e r c 23 advocates for low-income or underserved residents;
(2) create, make appointments to and duly consider recommendations of an advisory committee or committees made up of stakeholders, including health insurance issuers, health care consumers, health care providers, health care practitioners, brokers, qualified employer representatives and advocates for low-income or underserved residents;
e a n b 24 (3) create an advisory committee made up of u [ members insured through [the New Mexico health insurance .211923.1 - 9 - alliance and] the New Mexico medical insurance pool to make recommendations to the board regarding the transition of each organization's insured members into the exchange.
(3) create an advisory committee made up of members insured through the New Mexico medical insurance pool to make recommendations to the board regarding the transition of each organization's insured members into the exchange.
(4) create an advisory committee made up of Native Americans, some of whom live on a reservation and some of whom do not live on a reservation, to guide the implementation of the Native American-specific provisions of the federal Patient Protection and Affordable Care Act and the federal Indian Health Care Improvement Act;
(4) create an advisory committee made up of Native Americans, some of whom live on a reservation and some SB 294 Page 8 of whom do not live on a reservation, to guide the implementation of the Native American-specific provisions of the federal Patient Protection and Affordable Care Act and the federal Indian Health Care Improvement Act;
The Native American liaison shall serve as a contact person between the e e 17 exchange and New Mexico Indian nations, tribes and pueblos and e e n d 18 shall ensure that training is provided to the staff of the = = l ] 19 exchange, which may include training in:
The Native American liaison shall serve as a contact person between the exchange and New Mexico Indian nations, tribes and pueblos and shall ensure that training is provided to the staff of the exchange, which may include training in:
a l r i 20 (a) cultural competency;
(a) cultural competency;
t e a t (b) state and federal law relating to m m 21 e d r e 22 Indian health;
(b) state and federal law relating to Indian health;
and c e r c 23 (c) other matters relating to the e a n b 24 functions of the exchange with respect to Native Americans in u [ the state;
and (c) other matters relating to the functions of the exchange with respect to Native Americans in the state;
and .211923.1 - 10 - (6) establish at least one walk-in customer service center where persons may, if eligible, enroll in qualified health plans or public coverage programs." SECTION 3.
and (6) establish at least one walk-in customer service center where persons may, if eligible, enroll in qualified health plans or public coverage programs." SECTION 2.
Within sixty days of the effective date of the New Mexico Health Insurance Exchange Act, the board shall create a preliminary plan of operation containing provisions to ensure the fair, reasonable and equitable administration of the exchange.
Within sixty days of the effective date of the SB 294 Page 9 New Mexico Health Insurance Exchange Act, the board shall create a preliminary plan of operation containing provisions to ensure the fair, reasonable and equitable administration of the exchange.
Within six months of the effective date of the New Mexico Health Insurance Exchange Act, the board shall create and implement a final plan of operation containing provisions to ensure [the fair, reasonable and equitable administration of] that the exchange is administered using best practices in business administration.
Within six months of the effective date of the New Mexico Health Insurance Exchange Act, the board shall create and implement a final plan of operation containing provisions to ensure that the exchange is administered using best practices in business administration.
e e 17 B.
B.
The board shall provide for public notice and e e n d 18 hearing prior to approving the plan of operation.
The board shall provide for public notice and hearing prior to approving the plan of operation.
= = l ] 19 C.
C.
a l r i 20 (1) establish procedures to implement the t e a t provisions of the New Mexico Health Insurance Exchange Act, m m 21 e d r e 22 consistent with state and federal law;
(1) establish procedures to implement the provisions of the New Mexico Health Insurance Exchange Act, consistent with state and federal law;
c e r c 23 (2) establish procedures for handling and e a n b 24 accounting for the exchange's assets and money;
(2) establish procedures for handling and accounting for the exchange's assets and money;
and u [ (3) establish regular times and meeting places .211923.1 - 11 - for meetings of the board.
and (3) establish regular times and meeting places for meetings of the board.
(3) establish procedures for alternative dispute resolution between the exchange and contractors or health insurance issuers;
(3) establish procedures for alternative dispute resolution between the exchange and contractors or SB 294 Page 10 health insurance issuers;
and (b) promote cultural competency in e e 17 providing effective services to Native Americans;
and (b) promote cultural competency in providing effective services to Native Americans;
e e n d 18 (5) establish conflict-of-interest policies = = l ] 19 and procedures;
(5) establish conflict-of-interest policies and procedures;
and a l r i 20 (6) contain additional provisions necessary t e a t and proper for the execution of the powers and duties of the m m 21 e d r e 22 board." c e r c 23 - 12 - e a n b 24 u [ .211923.1
and (6) contain additional provisions necessary and proper for the execution of the powers and duties of the board." SB 294 Page 11 25
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Action History

  1. Signed

  2. Senate concurred in House amendments

  3. passed House

  4. DO PASS, as amended, committee report adopted

  5. Sent to House Health & Human Services Committee

  6. passed Senate

  7. DO PASS committee report adopted

  8. DO PASS committee report adopted

  9. Sent to Senate Public Affairs Committee & Senate Judiciary Committee

Sponsors

  • Mary Kay Papen · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 111 not signed on

Sponsors (1)

  • Papen, Mary Kay

Co-sponsors (0)

None.

Not signed on (111)

111 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 294?
SB 294 is sponsored by Papen, Mary Kay.
What is the current status of SB 294?
This bill has been enacted into law. Introduced January 22, 2019. Enacted.
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