American College of OB/GYN, NM Section

From:                John Anderson, Legislative Counsel

RE:                      2009 Legislative Summary I

On January 20, the opening day of the 2009 sixty-day Legislature, Governor Bill Richardson gave his seventh state of the state speech.

Having withdrawn his nomination as Secretary of Commerce, Governor Richardson admitted that his greatest challenge is how to handle a $454 billion budget shortfall for the fiscal year ending June 2009.  The governor has called 2009 the “Year for Fiscal Restraint.”  To balance the budget without raising taxes, the executive is proposing a cut in education spending, reduction in state agency funding, a modification in the state’s corporate income tax schedule, and an elimination of $263 million of public building projects and equipment purchases that had been authorized by previous legislatures but not yet undertaken.   It has been reported that $1.8 billion representing 7,685 projects has been appropriated for capital outlay projects since 2002 and not yet expended. 

            Some lawmakers concede that it may be necessary to raise taxes to deal with this year’s shortfall.  Potential tax “adjustments” and revenues derived include:

¡        Increase personal income tax to pre 2003 levels.  $400 million

¡        Increase motor vehicle excise tax by 1%.  $40 million

¡        Repeal the gross receipts tax deductions on food and medical services. $80 million

¡        Payment of quarterly estimated income tax payments. Present law provides for 3 payments per year. $70 million

¡        Mandate combined reporting for corporate income tax. $90 million

¡        Increase the tax on oil extraction from 3.15% to 4%.  $27 million

            The governor’s health reform agenda for 2009 includes:

¡        Electronic Medical Records Act to encourage providers to utilize electronic medical records.

¡        Consolidation of public coverage programs, including the New Mexico Health Policy Commission becoming a part of the Department of Health and the New Mexico Health Alliances becoming a part of the Human Services Department.

¡        Insurance reform to require:

o                   Insurance companies to offer coverage to any individual who requests it, without exclusion of pre-existing conditions;

o                   Employers to offer IRS Section 125 pre-tax plans to interested employers not otherwise offered coverage; and

o                   A health insurer to spend at least 85% of the amount it collects in premiums for coverage across all health product lines over a 3 year period.

            The governor is no longer advocating the creation of a new state authority to oversee health coverage reform.  During last year’s legislature, much of the focus of health care reform was on a proposed health care authority which critics said would vest too much control in the governor.

Other health care legislation includes:

HB 339- Health Security Act.  Bill ensures that health care coverage is available to New Mexicans through a combination of public and private insurance.  Participation is mandatory for holders of private insurance.  Thus, the act would set up a cooperative health plan that would automatically cover most New Mexicans in one large pool with comprehensive services regardless of ones health, economic or employment status.

SB 314 – State Insurance Program Reimbursement Rate.  Bill provides that HSD shall establish a rate for the reimbursement of providers for services rendered to enrollees in the state coverage insurance program that is not less than 120% of the Medicare fee schedule.

HB 267 – Health Care Authority Act.  Bill creates a board of directors of eleven voting members with at least one member being a licensed physician.  The authority shall, by September 1, 2010, develop and present to the governor and the legislature, a comprehensive action plan for accessible and affordable health care for New Mexicans.  This is not an administration proposal.

SB 174 - The Professional Licensing Board Review Act.  Bill established a review procedure for changing the scope of practice for health care professionals.

SB 61 – Rural Health Care Tax Credit Eligibility.  Bill amends the definition of a rural care under served area (to include Dona Ana, San Juan and Santa Fe counties) for the purposes of eligibility of the rural health care tax credit.

HB 111 – Health Insurer Direct Services Reimbursement.  Bill requires health insurers licensed in New Mexico to pay reimbursements for direct services at a rate not less than 85% of premiums collected over all health product lines.

SB 325 – Annual Medicaid Reimbursement Rate Increases.  Bill requires HSD to increase the reimbursement rate to providers for their services to Medicaid fees for service or managed care patients

SB 77 – Bio Medical Research Act.  Bill fosters research and therapies in the life science and regenerative medicine by permitting research and clinical applications involving the derivation and use of human embryonic stem cells and stem cell lines.  The bill prohibits human reproduction cloning.

HB 148 – Obstetrics Administrative Compensation.  Bill provides that by July 1, 2009, the New Mexico Health Policy Commission shall convert an obstetrics administrative compensation system task force to devise a comprehensive plan for the creation, design, and implementation of an obstetrics administrative compensation system to hear and determine claims regarding birth related injuries.

            By July 1, 2010, the obstetrics administrative compensation system task force shall report its comprehensive plan to the legislative health and human services committee and the legislative finance committee.

HJM 7 – Continue Obstetric Health Care Task Force.  The memorial provides that the New Mexico Health Policy Commission continue the task force on obstetric health care practitioner liability insurance and to expand the scope of the task force to include evidence-based maternity care.

SB 121 – Parental Notification Act.  Bill provides that an abortion may not be performed upon an unemancipated minor or upon a female for whom a guardian or conservator has been appointed because of incompetency until at least 48 hours after written notice of the pending operation has been delivered to the parent, guardian or custodian.

SB 104 – Patient Choice for Medical Services.  Bill requires that all physicians, hospitals and outpatient surgery centers with comparable quality and credentialing requirements in a geographic area have equal opportunity to enter into preferred provider arrangements with health care insurers serving the area and that all providers receive equivalent payment.

SB 256 – Freedom of Choice Act.  Codifies Roe v. Wade.  Bill provides a privacy right of individuals to make personal reproduction decisions.

HB 422 –Licensed Midwives Administering Certain Drugs.  Bill allows a licensed midwife to order and administer certain dangerous drugs and devices.