The particulars of New Mexico Governor Bill Richardson's health care proposal were released earlier this week. The specifics provided by the Human Services Department are as follows:
The plan would require $590 million in new general fund spending (out of a current General Fund of $5.7 billion) over the next five years, with business picking up most of the tab;
Increasing the number of children enrolled in Medicaid or the State Children's Health Insurance Program by 48,000 over five years. That would require $44 million in new general fund spending;
Enrolling 211,000 adults over five years in Medicaid and in a state-subsidized insurance program called State Coverage Insurance. That would require new general fund spending of $545 million.
Other provisions of the plan would require people who don't have coverage but can afford insurance to purchase it.
On the revenue side:
Employers of six or more full-time workers who do not provide health insurance benefits would be required to pay an estimated $136 million a year into a state fund that would be used to offset costs of public coverage programs;
Employers of part-time workers and owners of smaller companies would be assessed $29.4 million a year;
More commercial insurance is expected to be purchased, which would lead to a $21.6 million increase in premium tax collections from insurance companies, though the premium tax rate would not increase;
An unspecified amount would come in the form of increased tax collection spurred by an increase in economic activity. The administration expects that more money available for health care would encourage more hiring in that sector of the economy and, therefore, higher payrolls and more spending.
