New Mexico State Officials Announce Lower Cost Projections For Health Care Proposal

Main Category: Health Insurance / Medical Insurance
Also Included In: Public Health
Article Date: 21 Dec 2007 - 10:00 PDT

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New Mexico Human Services Secretary Pam Hyde on Monday presented state legislators with "drastically reduced" cost estimates of a universal health coverage plan introduced by Gov. Bill Richardson (D), the AP/Santa Fe New Mexican reports. According to the new estimate, state health care spending would increase by less than $30 million in fiscal year 2010, and projected additional costs over five years would be about $72 million under the governor's plan (Baker, AP/Santa Fe New Mexican, 12/17).

Hyde on Dec. 4 told the state Legislative Finance Committee that, based on a cost analysis prepared by the Mathematica Policy Research Group, state health care spending under the proposal would increase by about $75 million in FY 2010 and by $333 million over five years (Kaiser Daily Health Policy Report, 12/7). However, Mathematica officials said a computer error led to inflated cost estimates for Richardson's plan and all other reform plans the company was reviewing for the state Legislature, according to the AP/New Mexican.

The new figures are still preliminary and will be reviewed by Mathematica ahead of its final report to the state Legislature in February 2008.

Mathematica also revised its estimate of what percentage of the state's population younger than age 65 does not have health care from 25% to 18%, according to Deborah Chollet, the company's project director. Chollet said the new figure was based on new data from FY 2007 that showed a considerable increase in the number of residents who are enrolled in Medicaid and other health care programs for low-income people (AP/Santa Fe New Mexican, 12/17).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation© 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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