New Mexico Governor Bill Richardson Proposes State Universal Healthcare

New Mexico Governor Bill Richardson announced on Thursday a reform of New Mexico's healthcare system in order to provide insurance to all New Mexico residents. The Health Solutions New Mexico Plan will be proposed to the New Mexico Legislature next year.

In a press release issued by the Governor's office, Richardson said, "Our health system is too complex. It asks employers and individuals to be insurance experts. Patients must navigate through a maze of requirements that reward discrimination based on health status. It values expensive procedures over prevention." He added that his plan would reform the insurance industry in the state and expand coverage. He said, " We must make coverage more affordable, care more accessible and the system more accountable."

The Health Solution New Mexico Plan works on two principles in order to work toward providing universal insurance coverage. Public programs will be increased and expanded, but only in financially sound and responsible ways. Richardson assures those with private insurance that they are more than welcome to keep it. The new program will work to cover those without health insurance, but can be available to those dissatisfied with their current coverage.

The plan will deal with insurance reform, which is a major issue for many Americans as well as businesses that seek solutions to increasing costs. The reforms will work to stop the exclusion of pre-existing conditions from insurance coverage, as well as requiring that 85 percent of private insurance premiums to be spent on health care directly, which is how the public programs run.

The Governor's plan phases in participation over the next three years, requiring all employers to offer insurance coverage instead of just a portion of employers. Health costs are higher for those who do contribute, because of those who pay nothing to cover employees.

In addition to the Governor's proposed plan, Richardson has signed an executive order, which will take effect in July 2008, making it mandatory that any contractor with six or more employees that wishes to do business with the State must show that they offer insurance coverage. The order also delineates that those awarded contracts of certain amounts will also have to show proof of coverage, no matter the number of employees the contractor has. These contract award limits will also be phased in over three years.

The Health Solutions plan will also require a move to electronic records and claims to reduce costs. Finally, the plan will create a Health Coverage Authority to oversee the new plan. The plan also urges the New Mexico Legislature to approve an increase in health professionals loan repayment programs.

The Governor furthermore will ask for more money in the next budget to continue enrolling children in Medicaid and the SCHIP programs. In New Mexico, there are nearly 60,000 children that are eligible for one of the programs, but are not enrolled.

New Mexico Lt. Governor Diane Denish said in the press release, "We have met with the stakeholders and, with them, have developed a phased-in plan that presents the best options for consumers, providers, businesses, insurers and state government. Too many people are hurting. We must act boldly and pursue this now."

Source: Office of the Governor of the State of New Mexico