By Eleanor Chavez and Max Bartlett
Health Security for New Mexicans Campaign
On October 19, 11 out of 19 members of Gov. Bill Richardson's Health Coverage for New Mexicans Committee, his third task force on health insurance reform, ranked the New Mexico Health Security Plan as their No. 1 choice to be included in a study that will analyze three different health care reform models and how they impact rising health care costs.
The committee's decision reflects the growing support of New Mexicans from all around the state for the Health Security Plan. The Health Security for New Mexicans Campaign, which developed this plan, continues to grow: it now consists of 126 diverse organizations, representing thousands of New Mexicans. In addition, hundreds more individuals, business owners and physicians support the Campaign.
There are many reasons for the strong support on the Committee to study this plan:
This is a well thought-out plan, developed over more than a decade with input from thousands of New Mexicans around the state from all walks of life. The Health Security Plan is designed by New Mexicans for New Mexicans.
The Health Security Plan sets up a health insurance cooperative that guarantees health coverage for approximately 1.6 million New Mexico residents, regardless of employment, economic or health status. (The only populations not covered by the plan are federal retirees and active-duty and retired military. The tribes and employers that are self-insured under ERISA can elect to join the plan.)
The Health Security Plan guarantees choice of doctor (even across state lines), a generous benefit package that can be no less than the one that state employees have currently, and strong protections for retirees.
The plan will be financed with a dedicated fund, which efficiently combines monies from government sources (i.e., Medicaid and Medicare) with individual premiums based upon income and employer contributions based upon payroll (both with caps).
An independent, geographically representative and publicly accountable commission will administer the plan. Of 15 commissioners, 10 represent consumer and business interests and 5 represent the provider community. Hospitals, clinics, HMOs, private practice physicians, pharmacists, and other providers negotiate their budgets and fees with the Commission.
The plan will be able to spread the risk, reduce administrative overhead for health care providers and hospitals, and contain rising health care costs, because 1.6 million New Mexicans will be in one insurance pool, instead of the numerous small insurance pools we have today.
This large insurance pool will allow for bulk purchasing of drugs and medical equipment and supplies.
Premiums for insurance policies that have large medical components, specifically automobile and worker's compensation, will be reduced.
When the bill creating the Health Plan is approved by the Legislature, there will be a go-slow, three-year implementation period to ensure that we do this right.
Year One is called "The Year of Financing," during which the Legislative Finance Committee, with public input, will determine the cost of the Plan, the premiums and employer contributions and automobile and workers' compensation premium reductions. At the end of the year, the Legislature and the governor must approve the financing package— otherwise, the plan will not go into effect. During Years Two and Three, details of how the plan will operate are developed with legislative, executive and public input from around the state with the ability to extend the time to proceed or to put on the brakes.
There seems no end to the current health care crisis. Managed care, touted as the magic solution in the early 1990s, and other patchwork approaches have failed. We have an important choice to make: continue to invest public dollars in a failed private insurance system or set up our own New Mexico cooperative plan that shifts the role of private insurance to a supplementary one, as is now the case with Medicare.
The Health Security Plan has not only gained substantial support in New Mexico, it also is attracting attention from other parts of the country. It was the inspiration for a similar bill introduced this year in the Arizona Legislature. At a time when polls indicate that public confidence in our private health insurance system is at an all-time low, the moment is right for the New Mexico Legislature and governor to lead us toward real health security.
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