Consultants have outlined for New Mexico’s Democratic-led Legislature the financial consequences of adopting a state-administered universal health insurance program for all residents.
The final report, commissioned by lawmakers in 2019, says that such a system would improve affordability for low-income households. However, premiums for other families, employer contributions and payroll taxes likely would go up to pay for what could be as much as a $5.8 billion shortfall for the program over the first five years.
In addition to employer contributions and higher premiums, the report says, most of the cost could be financed by redirecting public funding from duplicative health programs.
“Still, additional funding sources may be needed to fully cover the cost of the program, depending on the structure of the plan,” the report says.