By Pamela S. Hyde
Secretary, Human Services Department
A Journal article about the costs of the governor's health-coverage plan indicated most of the costs would be covered by business.
I would like to clarify for the Journal's readers and the business community the information provided to the Legislative Finance Council and help you understand how the costs and the revenues of the HealthSOLUTIONS New Mexico plan will be good for the uninsured and the business community.
First, this was a modeling exercise based on many cost and revenue assumptions. I made it clear in my testimony that those assumptions could change, based on decisions by the Legislature as it goes through the budgeting and legislative process.
One such assumption was the contribution to the Healthy New Mexico Workforce Fund by those businesses that do not currently offer coverage for employees.
The fact is that most employers do contribute already to their employees' health by offering pre-tax health-coverage plans that are good for employees and employers. Things will not change for those employers. However, the employers that do not offer coverage have an unfair advantage competing with those that do.
Business representatives worked with us to develop a modest contribution option for those that do not offer coverage so that they, too, could contribute to the health of New Mexico's workforce.
Those businesses that choose to offer coverage will not have to pay anything to the fund. Those that choose not to offer coverage will be asked to contribute. That spreads the burden and introduces fairness for all New Mexico businesses, while retaining choices for employers.
Additional revenue would come from growth in the health-care industry. That is, more premium taxes and more gross-receipt and income taxes would be collected— not more imposed— due to additional federal spending, additional policies sold, additional health care delivered, and paid health care delivered rather than the current high rates of uncompensated care.
This means a growth in business in New Mexico. This is good for business, not a new burden on business.
Gov. Bill Richardson's health coverage plan will reduce bureaucracy, increase coverage options for individuals so everyone can be covered without exclusion for pre-existing conditions, reform insurance to hold costs down— especially for small employers— increase transparency and plan for and implement 21st century health information technology.
And, it does these things without major disruption for those employers who currently offer coverage and those employees who have health coverage through their employers. That's good for New Mexico business and good for the health of New Mexicans.
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