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Upcoming Events Executive Board Meeting 1/19/08 MLK Holiday Event 1/21/08 AFSCME Lobby Day 1/31/08

Please Attend the Forums
and Interim Committee Meetings

It is very important that those of you who live in these communities attend and make the forum organizers and the interim committee members aware of your support for the Health Security Act.

Here are some possible talking points.

The Mathematica study clearly indicates that the Health Security Act is the only proposal that reduces health care costs and covers everyone. Only the Health Security Act costs less than the current system. It is the only model that saves money. Even after five years of operation, the other two models still cost more than the current system.

Taxpayer dollars have been spent on a study, which is being ignored.
This is the second time that a New Mexico study has concluded that including all or most New Mexicans in one health risk pool will save hundreds of millions of dollars. (The first was in 1994.)
Solutions that rely on the private insurance system are not acceptable.

The Health Security Act has had input from thousands of New Mexicans over the years. The Act is supported by 128 organizations and 26 counties and cities. It is the only proposal with public support.
It is time to pass the Health Security Act (explain why you support it).
If you would like a summary of the results of the Mathematica study, or a copy of Mathematica's final report, contact Josette (see below).

Let us know what happens at the meetings you are able to attend. Your feedback is always important to us.

Contacting the Governor

Governor Richardson has publicly stated that he does not like any of the models that were studied by his Health Coverage for New Mexicans Committee and that he is committed to a system where private insurers play a dominant role. Despite the study's conclusion that the Health Security Act would save New Mexico hundreds of millions of dollars, the Act does not have the Governor's support.

Please contact Governor Richardson and ask him to support the Health Security Act. His office can be reached at 505-476- 2200. If you prefer to write him a letter, his mailing address is Office of the Governor, 490 Old Santa Fe Trail, Room 400, Santa Fe, NM 87501.
You can also email him through his website, www.governor.state.nm.us/emailchoice.phpmm=6.

If you have any questions, contact Josette at 505-771-8763 or jhaddad@cableone.net.

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Final Study Results:
Health Security Plan Most Cost Effective

Governor's Reaction: Study Results Don't Matter

On Thursday, June 21, The Governor's Health Coverage for New Mexicans committee received the final results of a study that it had commissioned comparing the cost of the existing health insurance system to four (now five) very different health care reform models over a five-year period.

Well before the results of the study became public, the Governor announced that he did not like any of the models and that he was committed to a solution that includes the private insurance companies.

Once again, the Health Security Act proves to be the most cost-effective approach to solving the problem of the uninsured and containing rising health care costs. It is the only model that costs less than the current system in the first year. By 2011 the estimated savings rang e from $700 to $900 million compared to the current system. The other models still cost more than the current system - even after five years of operation.

On Thursday, June 21, Michelle Welby, the Governor's health policy advisor, announced the Governor's plan to introduce an omnibus bill during the 30-day session. She pointed out that since the Governor believes that the private insurance system is not broken, his legislation will focus only on the 20% who are uninsured. He wants to create a new structure, an "authority," that will be in charge of all public plans and setting policy. The authority will also have other responsibilities. He expects to have the legislation ready for review within 90 - 120 days.

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What is Clear

Once again taxpayer dollars have been spent and the results ignored of a study that shows the path taken by the Health Security Plan is the most cost-effective, provides comprehensive coverage and freedom of choice of provider. (In 1994 the Lewin report came up with the same conclusions for New Mexico.) These savings occur because the Health Security Act creates an old-fashioned risk pool that includes most New Mexicans, shifting the role of the private insurance industry from a primary to a secondary payer (like Medicare), and reducing provider administrative burdens.

The path the governor is choosing is simply more of the same, adding another layer of bureaucracy. The governor appointed "Authority" would have to rely on more and more taxpayer dollars to subsidize the private insurance system so uninsured New Mexicans not eligible for Medicaid could afford insurance. The study results, in fact, show that such a model will not solve the problem of rising health care costs, simplify an extraordinarily complex private and public health insurance system and provide comprehensive coverage.

The Study Results

The following five models were analyzed by Mathematica, the company hired to perform the analysis.

Model 1. Health Security Act, Version 1: Our plan, which sets up a cooperative to provide health insurance to almost all New Mexicans. This version assumes urban provider administrative savings.

Model 2. Health Security Act, Version 2: This second version assumes no provider administrative savings.

Model 3. Health Choices, Version 1: A health insurance marketing alliance that provides vouchers to all New Mexicans, paid for with taxpayer dollars.

Model 4. Health Choices, Version 2: A version of the health insurance marketing alliance that allows employers who provide insurance to opt out.

Model 5. Health Coverage Plan: Expansion of the current system, assuming greater enrollment in Medicaid and other public programs.

Below are Mathematica's final numbers. Please note that these numbers exclude the over-65 (Medicare) population and the institutional population--populations that the Health Security Act would cover. The numbers also assume that under each model all New Mexicans are covered (a questionable assumption with all the models except the Health Security Act).

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What these numbers mean:

In 2007, only the Health Security Act costs less than the current system even when assuming no provider savings. The other models cost more than the current system.

In 2011, the Health Security Act, Version 1 saves $887 million (health expenditures are reduced by $887 million). Health Security, Version 2 saves $700 million. The Health Choices models cost $336 million and $383 million more than the current system. This amounts to over a $1 billion difference when you compare the cost of the Health Security models to the cost of the Health Choices models. (For example, Health Security, Version 1 costs $7,878 billion in 2001 while Health Choices Version 1 costs $9,101 billion in that same year.)

In 2011, the Health Coverage model costs $70 million more than the current system. If you compare the difference in costs between the Health Security models and the Health Coverage model, Health Security, Version 1 amounts to almost $1 billion dollars in savings and Health Security, version 2 amounts to $800 million. (For example, Health Security, version 1 costs $7,878 billion in 2011 and Health Coverage costs $8,835 billion.)

What's Next

The Committee will be preparing its final recommendations which will be presented to the interim Health and Human Services Committee.

If you have any questions or comments, feel free to contact Dana at 856-8359 or dsmillen@msn.com.

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