Three States Consider Proposals To Expand Health Care Coverage

Main Category: Health Insurance / Medical Insurance
Article Date: 10 Dec 2007 - 7:00 PDT

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Summaries of news articles about health care proposals in New Mexico, New York and Vermont appear below.

New Mexico
A universal health coverage proposal by New Mexico Gov. Bill Richardson (D) would cost the state an additional $333 million over five years, but the state would generate enough new revenue under the proposal to cover the costs, state Human Services Secretary Pam Hyde said on Tuesday, the AP/Santa Fe New Mexican reports. Hyde on Tuesday outlined the preliminary cost estimates to the state Legislative Finance Committee.

The cost analysis, prepared by the Mathematica Policy Research Group, projects state health care expenses over a period of five years under the current health care system, as well as expenditures if Richardson's plan was fully implemented beginning in fiscal year 2010. According to the analysis, under the current system, the state would spend about $6.9 billion on health care in 2010 and about $9.2 billion in FY 2014. Under Richardson's proposal, health care spending in 2010 would increase by about $75 million and by $333 million over five years.

Richardson expects that federal Medicaid funding to the state would increase by about $173 million in the first year of the plan and by about $760 million over five years. In addition, private spending under the governor's proposal would increase by about $578 million in 2010 and by nearly $2.8 billion over five years.

Hyde said between $187 million and $200 million could be raised annually from fees paid by employers and from increased collection of an existing tax on insurance premiums. According to Hyde, as more people obtain health insurance, the current tax will generate more funds. In addition, Hyde suggested Richardson's plan would be more cost-effective in the long run than incremental changes (Massey, AP/Santa Fe New Mexican, 12/5).

New York
New York state Assembly Health Committee Chair Richard Gottfried (D) on Wednesday proposed a state-run, universal health care system that likely would be paid for by new taxes, AP/Long Island Newsday reports (Caruso, AP/Long Island Newsday, 12/5). Under the plan, all state residents would be enrolled in health insurance similar to Medicaid or Medicare, and there would be no deductibles or copayments. The system would be funded by an income tax on individuals and businesses.

The proposal would allow residents to retain private health insurance if they choose, and it would allow private, not-for-profit insurers to contract with the state to provide coverage for beneficiaries of the state plan. The state would set insurance premium rates, and insurers participating in the state plan would have to accept them (Crowley, Albany Times Union, 12/6). The plan would not include mandates and would build on the state's Family Health Plus and Child Health Plus programs (Ochs, Long Island Newsday, 12/6).

Gottfried said he believes his plan would reduce overall state health care spending by $4 billion to $59 billion (Albany Times Union, 12/6).

New York Gov. Eliot Spitzer (D) on Tuesday announced that the state has hired the Urban Institute, an independent research organization, to prepare a report evaluating different universal health care options for the state. The report is due by May 31, 2008. Several groups already have developed plans to expand health coverage in the state, including the Community Service Society, which presented a plan on Tuesday that would expand Child Health Plus. The proposal was presented at the final meeting of the Partnership for Coverage, an initiative by Spitzer to promote universal coverage in the state (Long Island Newsday, 12/6).

Vermont
The state Commission on Health Care Reform on Tuesday voted unanimously to recommend that the state Legislature consider measures that would improve health care affordability and access, the Burlington Free Press reports. The commission recommended measures that focus on five goals:

• Expanding affordable coverage to more state residents;
  
  
• Improving chronic disease prevention;
  
  
• Reducing the rate of increase in health care costs;
  
  
• Using health information technology to improve care; and
  
  
• Making investments to support a strong health care system.
  

The commission also recommended that lawmakers consider creating the Healthy VT program to target small businesses and individuals with high-cost insurance or restricted coverage. The estimated cost of the program ranges from $7.4 million if the program is limited to businesses with fewer than 10 employees, to as much as $24.4 million if businesses with up to 100 employees participate. The commission also called for faster adoption of electronic health records, a study on the implementation of an electronic prescribing system and a campaign to fight obesity (Remsen, Burling Free Press, 12/5).

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