Bill will Ensure State Doesn’t Miss Out on $125 Million
for Health Care Affordability Initiatives
New Mexico Together for Health Care on Wednesday celebrated the 6-4 passage of HB 278 through the House Taxation and Revenue Committee because the important legislation allows New Mexico to benefit from as much as $125 million per year for programs to make health care more affordable.
A federal fee on insurance companies is phasing out, giving New Mexico the opportunity to collect a portion of the fee at the state-level while reducing how much insurance companies owe. Through HB 278, New Mexico will collect this revenue to set up a Health Care Affordability Fund that reduces health care costs for working families in New Mexico.
“New Mexico has a unique opportunity to bring down the costs of health care, but we must take action this year,” said Adriann Barboa, Field Director for Strong Families New Mexico. “By moving quickly to create the Health Care Affordability Fund, the Legislature is seizing the opportunity to generate funding to help more New Mexicans stay healthy–instead of allowing insurance company executives to pocket millions of dollars.”
About eighty percent of the new money raised under HB 278 would go into the Affordability Fund and be used on innovative programs to make health care more affordable for New Mexicans. The remaining 20 percent of new revenues would go to the General Fund. The bill will raise as much as $125 million a year, according to the Legislature’s fiscal impact report.
Over the last few years, the state has increased its commitment to making health care more affordable. Both the Governor’s budget and the Legislative Finance Committee budget include funding for coverage initiatives at the state-level. The Health CareAffordability Fund would expedite this important work to reduce health care costs for working families as soon as possible. The Health Care Affordability Fund could be used to:
- Reduce premiums, cost-sharing and deductibles for working families;
- Establish innovative plans for working families; and
- Expand enrollment in healthcare coverage.
“For many New Mexicans, health care remains too expensive,” said Colin Baillo, Director of Policy and Communication at Health Action New Mexico. “With the Health Care Affordability Fund, we have the opportunity to invest in health care programs that will help more New Mexicans see a doctor, get preventive and mental health care, and fill their essential medications each month. No one should have to choose between getting the care they need and making ends meet. This is an investment that will have a big payoff for New Mexico and show that New Mexico is a leader on health care affordability.”
HB 278, sponsored by Rep. Debbie Armstrong, Rep. Javier Martinez and Rep, Liz Thomson, now goes to the full House for consideration.
