2020 Legislative Session
The legislative session starts tomorrow, January 21, and runs through February 20.
We're waiting for the fiscal analysis on the Health Security Plan to be completed (the final report is due June 30; see timeline below), so the Health Security Act will not be introduced this session.
Bills to Watch This Session
The Health Security Act is about systemic change, which means it affects numerous aspects of our healthcare system as it addresses costs and universal coverage.
Two of the Health Security provisions that will help control costs are global budgets for hospitals and clinics and bulk purchasing of drugs. These are integral parts of the Health Security Plan, so we'll be following two related legislative proposals this session:
SM 9: All Payer Global Hospital Budget Task Force
Senate Memorial 9 (SM 9), sponsored by Sen. Jerry Ortiz y Pino, will create a task force to explore how to implement global budgets for hospitals in New Mexico.
Under a system of global budgets, hospitals are guaranteed a stable revenue stream. An independent agency negotiates these budgets. Global budgeting is an alternative to the complicated charges that are creating enormous problems for so many patients and impacting health facility overhead costs.
Perhaps you have heard about the Carlsbad hospital scandal. The hospital has been suing patients who have insurance but cannot pay the inflated hospital bills. Carlsbad's experience is not unique--even in New Mexico.(Watch the New Mexico in Focus program or read the original New York Times article for the full story.)
And quite aside from exploitative pricing practices, many of our New Mexico hospitals, especially in rural areas, are facing financial difficulties.
Working on this issue now, prior to passage of the Health Security Act, will help to expedite setting up this aspect of the Health Security Plan. Moreover, investigating how to implement a global budget system can offer a financially sustainable path forward for New Mexico health facilities, while providing relief to New Mexico patients facing inflated hospital prices and complex bills.
SB 1: Wholesale Prescription Drug Importation Act
[Photo credit: Sharon McCutcheon on Unsplash]
Senate Bill 1, sponsored by Sen. Mary Kay Papen and Rep. Debbie Armstrong, will set up a system for importing pharmaceutical drugs from Canada. New Mexicans now pay about twice as much as Canadians for brand-name drugs.
SB 1 will create an Office of Wholesale Drug Importation at the NM Department of Health. This new office will negotiate with the federal government for approval of a Canadian wholesale drug importation plan to bring safe, lower-cost drugs into New Mexico.
This bill is on the governor's call, which means that its passage is a priority for Gov. Michelle Lujan Grisham. SB 1 has an $350,000 appropriation, so it will definitely go to the Senate Finance Committee (among other committees).
Working on this issue now, prior to passage of the Health Security Act, will help to expedite bulk purchasing of pharmaceutical drugs under the Health Security Plan. In addition, implementing a drug importation system will significantly and immediately reduce drug costs for New Mexicans, while ensuring drug safety.
For Now and for Later
SM 9 and SB 1 offer important steps for providing relief to everyday New Mexicans and health facilities--while getting a head start on key provisions of the Health Security Plan.
We'll be tracking these bills throughout the session, and we'll keep you posted.