ICYMI: Health Security Plan ‘Could Cost Thousands Of Jobs’

SANTA FE, N.M. – In case you missed it, the Albuquerque Journal reports that a proposed new state government-controlled health insurance system in New Mexico, also known as the Health Security Plan, “could come with a hefty financial toll, according to a recent analysis conducted by Ernst & Young.”

The analysis “concludes that the HSP could lead to as much as a $5.8 billion shortfall over five years after implementation, and would require a payroll tax increase to offset that shortfall. The high-end payroll tax estimate could cost the state as much as 27,000 job equivalents, a metric that factors in wage and hour reductions, according to study author Brandon Pizzola.”

The Journal reports that “Ashley Wagner, director of public policy and communications for the New Mexico Chamber of Commerce, said she’s concerned the bill could hurt economic growth in New Mexico just as the state is looking to recover from the impacts of the COVID-19 pandemic. ‘This is going to be an added tax,’ Wagner said. ‘… It just seems would be counterproductive to getting us back on the path for economic recovery.’”

Meanwhile, a recent statewide poll shows that most New Mexico voters are satisfied with their current health coverage and a majority do not support creating a new state government-controlled health insurance system, such as the proposed Health Security Plan. The poll of 800 likely voters in New Mexico, which was conducted by Locust Street Group on behalf of New Mexico’s Health Care Future, found that lower health care costs is New Mexico voters’ top health care priority and most believe that lowering health care costs for everyone is more important than universal coverage. In fact, 79 percent of New Mexico voters are unwilling to pay more in health care costs and 70 percent are unwilling to pay more in taxes to finance the cost of the Health Security Plan.

The poll also revealed that voters are deeply concerned about how a state government health insurance system would impact access to quality care (79 percent), coverage (73 percent), and the state budget deficit (71 percent).

• To read the full story in the Albuquerque Journal, CLICK HERE.
  
• To read the complete analysis from EY, CLICK HERE.
  
• To learn more about New Mexico’s Health Care Future, CLICK HERE.