ICYMI: New Analysis Finds New Mexico’s Health Security Plan Could Harm Economy & Job Market

A recently released analysis found that New Mexico’s Health Security Plan (HSP) could lead to a $290 million annual decline in New Mexico’s gross state product and a loss of up to 27,000 job equivalents annually, devastating New Mexico’s working families and economy.

The study was conducted by Ernst & Young LLP (EY) and examines the economic consequences of an increase in New Mexico’s payroll tax that would be needed to close any potential budget shortfall created by the HSP. EY’s analysis builds on the findings of a 2020 final report commissioned by the Legislative Finance Committee, which found that the HSP could require additional funding sources, including a 2.3 percent general payroll tax increase to cover the cost of the state government-controlled health insurance system.

According to EY’s analysis, increasing the general payroll tax on working families could lead to a $290 million annual decline in New Mexico’s gross state product (GSP), causing a $350 decrease in GSP per household. The study also found that funding the HSP could lead to the state losing up to 25,000 job equivalents in each of the first five years following implementation of the state government plan, 26,000 job equivalents in each of the second five years, and up to 27,000 job equivalents in the proceeding years.

Now, more than ever, New Mexico must build on and improve what’s working in health care where private coverage, Medicare and Medicaid work together to provide all New Mexicans with access to the affordable, high-quality health coverage and care they deserve.