Potential Medicaid cuts drive NM health legislation plans
As a panel of state lawmakers on Tuesday planned out their work for the rest of the year, their hopes to improve health outcomes for New Mexicans were overshadowed by the looming threat of federal cuts to health insurance coverage.
At the Legislative Health and Human Services Committee's first meeting since the most recent legislative session, Rep. Larry Scott (R-Hobbs) told the committee lawmakers need to be ready if the U.S. government turns administration of Medicaid over to the states.
'I don't think any of those changes should try to take us by surprise,' Scott said.
State and federal officials say the GOP budget bill making its way through the U.S. Congress could not only reduce federal spending on Medicaid but also the oil and gas revenue that the state government could use to cover the costs.
In the worst-case scenario, the proposal would translate to cuts of more than $1.1 billion for New Mexico's Medicaid program, according to one of the Legislature's top budget advisers.
The worries over Medicaid cuts come as New Mexico is in the middle of restructuring its entire behavioral health care treatment system, with the state's Medicaid program expected to create a group of licensing boards to help streamline mental health providers' credentialing.
During public comment at Tuesday's meeting, Rick Madden, chair of government affairs at the New Mexico Medical Society, told the committee that his organization strongly supports the committee's focus on the potentially extreme effects of funding cuts and work requirements on local patients and communities.
Sen. Liz Stefanics (D-Cerrillos) said she wants the health panel to receive updates from the Federal Funding Stabilization Subcommittee, which legislative leaders created late last month in order to track all federal money coming into New Mexico.
'Many of us, of course, are very concerned about it, and it's not just Medicaid that we need to be concerned about,' Stefanics said.
Rep. Marianna Anaya (D-Albuquerque) suggested the panel have a joint meeting with the Legislative Finance Committee for any health care-related cuts coming from the federal government, not limited to Medicaid.
'When we're talking about funding and affordability, knowing that we're going to have to plug holes, what realistically does the picture look like for us?' Anaya asked.
During the legislative session, New Mexico created a new Medicaid Trust Fund that aims to generate enough in interest to pay for at least some of what the federal government could cut in Medicaid spending. Rep. Eleanor Chavez (D-Albuquerque) wants the committee to review what's happening with that money.
The committee's next meeting is scheduled for June 25 through June 27. Lawmakers also suggested where they will hold their meetings, however, a complete schedule was not available as of Tuesday.
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