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Universal, adequate and fair health coverage – without a single…
New Mexico Health Choices
A market-based universal coverage proposal
Version 1.3
July 2005
New Mexico Health Choices
Executive Summary
The New Mexico Health Choices proposal:
Ensures that all New Mexicans have health insurance
Gets contributions from all individuals and businesses, according to their means rather than employment, age, family situation or medical history
Offers individuals a choice of private insurance plans to fit their needs, from catastrophic plans with medical savings accounts to comprehensive coverage, and frees employers from making medical benefit decisions
Places the entire non-Medicare population in large insurance purchasing pools to improve competition and lower insurance costs
Reduces medical costs by giving health consumers greater knowledge and responsibility, reducing costs and risks for providers, allowing financial incentives for individual and workplace wellness, encouraging disease management programs
Boosts economic development, by carefully balancing costs and funding sources to keep New Mexico competitive, reducing costs, improving workforce mobility and productivity, and strengthening the healthcare industry
Proposed implementation:
Private insurers are invited to publish offers for various population segments and co-insurance levels. The state coordinates an annual statewide enrollment procedure. Individuals receive vouchers, larger for low-income families, with which to purchase a fully funded basic policy; upgraded coverage with additional premiums; or a cheaper high-deductible plan with the difference placed in a Healthcare Savings Account.
A pool of tax dollars funds healthcare premiums for all except Medicare recipients, federal employees and the military. The Medicaid program already draws $2.6 billion in state and federal funding. Depending on desired benefit allocations and other factors, $2.6 to $3.2 billion more are needed to replace current insurance premiums and cover the uninsured.
A spreadsheet model demonstra
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