SENATE JOINT MEMORIAL 19

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Sue Wilson Beffort

FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE

A JOINT MEMORIAL

REQUESTING THE NEW MEXICO HEALTH POLICY COMMISSION TO STUDY THE IMPACT OF PROVIDING TAX CREDITS FOR LOW-INCOME PERSONS BASED ON HEALTH INSURANCE COSTS.

     WHEREAS, health insurance premiums have risen at a rate that outpaces general inflation; and

     WHEREAS, rates for health insurance vary significantly, especially in the individual and small business markets; and

     WHEREAS, affordability is the key purchasing consideration for individual and most group health insurance purchasers; and

     WHEREAS, approximately twenty-two percent of the population of New Mexico is uninsured, in large part due to the high cost of health insurance; and

     WHEREAS, a refundable tax credit could make health insurance premiums far more affordable and provide a substantial incentive to uninsured people to purchase health insurance, thereby reducing the number of uninsured in New Mexico; and

     WHEREAS, personal responsibility and involvement by consumers in their health care is an important factor in keeping costs affordable and ensuring continuing choice in health insurance coverage; and

     WHEREAS, there are many ways to structure a tax credit for health insurance and many considerations regarding eligibility for credits; and

     WHEREAS, the potential cost to the state in lost revenue is unknown;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the New Mexico health policy commission, with the cooperation of the insurance division of the public regulation commission and the taxation and revenue department, be requested to conduct a study of the impact of providing refundable tax credits for low-income persons based on the amount spent for health insurance; and

     BE IT FURTHER RESOLVED that the study evaluate the forms a tax credit could take, who should be eligible for it, how large it should be and whether tax credits should be available for all health insurance premiums or restricted to certain types of coverage or certain income levels; and

     BE IT FURTHER RESOLVED that the study estimate the number of people who could benefit from a tax credit under various scenarios, as well as the cost to the state of implementing such a tax credit; and

     BE IT FURTHER RESOLVED that the New Mexico health policy commission report its findings to the interim legislative health and human services committee at its October 2004 meeting; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the New Mexico health policy commission, the superintendent of insurance and the secretary of taxation and revenue.

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