Special session: Governor narrows focus to children

New proposal targets health care for those 18 and younger

Kate Nash | The New Mexican

8/6/2008 - 8/7/08

Gov. Bill Richardson's administration has scaled back its proposals to insure the 400,000 New Mexicans who lack health care coverage.

With legislators scheduled to convene Aug. 15 for a special session, the governor narrowed his focus to children. He wants to require all parents to get coverage for children 18 and younger.

Department of Human Services Secretary Pam Hyde estimates 50,000 uninsured kids live in New Mexico.

Getting them insured would cost $58 million, the department said.

Lawmakers balked at more sweeping health-care reform plans during their regular session earlier this year, and Hyde said the administration worked to come up with something that lawmakers would agree to when they return to Santa Fe for the special session. She said the administration hopes to come back with other plans in subsequent sessions.

After dealing with concerns from lawmakers about doing too much too fast and at too high a cost, "we went back to (asking), 'What do we need to do first?' " she said.

Hyde has been working on drafts of the plans since the Legislature adjourned this spring, leaving health care a much-debated but mostly unresolved topic.

"We really hope these are now reasonable packages, and that there's reasonable debate," Hyde said Wednesday. Still, she added, "There are people who will want more and people who will want less."

The administration plans to present three bills.

The first would require parents to show proof of insurance for their children when they sign up for day care or school, starting next July. There would be no penalty for not enrolling, but Hyde said the proposal would help the state identify and reach out to the uninsured. Most children without insurance qualify for a Medicaid or Medicaid-related program, she said.

The measure would not require employers to offer health care or pay into a health care fund, but would require employers to allow employees to take advantage of the pre-tax deduction for health care expenses if the employee is interested.

The measure also would create a Health Care Benefits Administration, which would consolidate the administration of benefits offered to employees including for the state, local public bodies and schools, among others. That consolidation would be phased in over two years, starting in 2009.

The administration — known as the Health Coverage Authority in previous plans — would manage the health plans, benefits and funds of the beneficiaries. The administration's board would have 11 members, five chosen by the governor, including two Cabinet secretaries, five appointed by the Legislative Council and the superintendent of insurance. The governor would appoint the executive director of the board, subject to Senate confirmation. The new version of the plan would allow the executive director appointment style to sunset, or expire, after four years if legislators didn't like it.

Another measure deals with health care industry reform and in part calls for at least 85 percent of premiums that health insurance companies pay to be spent on health care services.

In addition, Richardson wants a measure to set standards for protecting electronic medical records.

A third bill would outline security and privacy protections for e-records similar to those for traditional paper records. The proposal also sets rules for limited access to electronic medical records in life-threatening emergencies. It would not mandate private doctors to use an electronic medical record system.

Whether the idea is more palatable to lawmakers remains to be seen. But Senate President Pro Tem Tim Jennings, D-Roswell, said it's hard to argue against insurance for kids. "I think that's probably pretty agreeable to do kids only," he said.

However, Jennings said, he and other lawmakers remain concerned about whether the state will have enough revenue to pay for the proposal. Recent projections had shown an expected surplus of $400 million, thanks to a run-up in oil and gas prices. But those prices have dropped in recent weeks.

"The revenues that were used to pay for this are going out the window," Jennings said.

Richardson has said he remains confident the money is there and during the session plans to offer a $211 million package of rebates for residents as well as seek funding for several highway projects.

Senate Minority Whip Leonard Lee Rawson, R-Las Cruces, said last week that he'd like updated revenue figures before the session starts. "The question is, will there be anything that passes during the session?" he said.

The answer? "That's going to depend on what revenue estimates are versus what the market is," he said.

Contact Kate Nash at 986-3036 or knash@sfnewmexican.com. Read her blog, Green Chile Chatter, at www.santafenewmexican.com.