Tuesday, 9 October 2007
New Mexico Governor Refines State’s Healthcare Reform Plan
New Mexico Governor Bill Richardson has added new more ambitious provisions of his healthcare reform plan that was drafted in June. Under the new provisions, all residents would be required to obtain health insurance, doctors’ fees would be limited, and insurance companies would be more heavily regulated by state law.
To determine who has health coverage, Governor Richardson suggested residents complete state licensure applications, include coverage information on school and university enrollment forms, or on tax returns. Residents who can’t afford to buy health insurance on their own must be enrolled in a government-sponsored program, reported the Albuquerque Journal.
Richardson would also impose a “guaranteed issue” law, which means that insurance companies would be required by law to accept every applicant. In addition, insurers must spend 85% of the premiums they collect to provide services.
Insurance companies typically oppose such laws because they say it increases rates for everyone. But Richardson’s plan would limit how much rates can increase, and give the state responsibility to keep coverage affordable.
These provisions are still under review by insurance representatives, state lawmakers, and healthcare professionals.
“[A]s we’ve talked with stakeholders we’ve got more clarity around how people think it might work,” said Human Services Secretary Pamela S. Hyde.
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