Sunday, May 11, 2008

New Mexico First in Nation in Senior Deaths from Falls 

By Paul Gessing

Categories:  New Mexico

According to a new study, New Mexico ranks number one (worst in the nation) in deaths from falls for seniors. New Mexico ranked highest with 99.26 deaths per 100,000 people over the age of 65. Wisconsin was second at 87.35 deaths per 100,000 people over age 65 and Vermont came in third with 81.46. Alaska ranked the lowest, with 15.95 deaths. Medical treatment costs for falls involving people over age 65 were more than $19 billion in 2000, and that figure is projected to increase to more than $40 billion by 2020.

While the problem of seniors falling is certainly real and obviously expensive, the ability to prevent it and potential preventative measures are unclear. Certainly, it would seem that seniors should be aware of the problem and take steps to prevent or prepare for it.

• posted by Paul Gessing
• 3:28 pm
• 0 comment

Friday, May 9, 2008

CDC Funding = Improved Health Outcomes? 

By Paul Gessing

Categories:  New Mexico

Recently, the Albuquerque Journal contained a story with the headline "NM Ranks High on Health Care." Since I follow these issues closely and have a pretty good grasp on New Mexico's very real health care problems, I immediately took a closer look. What gave New Mexico such a positive ranking on health care?

The answer, if you can call it that, is contained in a recently-released study by the Trust for America's Health. According to this study, what New Mexico ranks high in is receiving funding from the federal Centers for Disease Control.

Of course, there is no correlation between CDC spending and health care outcomes, but as a Trust spokeswoman said, "New Mexico does well competing for federal health care dollars. Officials in New Mexico have been aggressive and successful in submitting grant requests."

So, while the Trust study claims that more federal funding is needed for disease prevention programs, New Mexico is having great success in accessing more than its share. Maybe the next time the Trust studies health care spending, it will take a look at whether all this money actually achieves intended results.

• posted by Paul Gessing
• 12:00 pm
• 1 comment

Friday, May 2, 2008

HSAs, State by State 

Largest number in California; highest proportion in Minnesota

By Grace-Marie Turner

Categories:  California, Hawaii, HSAs, etc., Minnesota, New Mexico

America's Health Insurance Plans released its latest estimates of the number of people who have health insurance that would qualify them to have Health Savings Accounts.

AHIP for the first time produced estimates of how many people in each state have HSA-qualifying insurance. California leads with 638,999 (even though the state legislature refuses to allow people to deduct their HSA deposits from their state income taxes). Minnesota had the highest percentage penetration of HSAs, representing 9.2% of the insurance market. Massachusetts and New Mexico need to get with the program: They came in next to last at 0.9%, followed only by Hawaii at 0.1%.

Two key findings stand out. First, HSAs clearly are an important health insurance option for small business. The fastest growing market for HSA-qualifying insurance was in the small group market, accounting for 31% of new policies.

The average balance in an HSA account is $1,083, money that consumers have saved and can spend on future health care needs.

Roy Ramthun of HSA Consulting has produced an excellent and more detailed summary, which you can find here.

• posted by Grace-Marie Turner
• 8:01 am
• 0 comment

Friday, April 11, 2008

New Mexico Business Groups: "Raise Taxes for Existing Health Care Programs" 

By Paul Gessing

Categories:  New Mexico

I have a great deal of respect for people who own and operate businesses in New Mexico. This a big-government state and the culture is not friendly to entrepreneurs. That said, a recent story (subscription required) from the Albuquerque Journal's Business Outlook section outlining a new health care plan being developed by business groups including the New Mexico Restaurant Association and the Association of Commerce and Industry.

Unfortunately, rather than supporting market-based reforms such as those proposed earlier this year by the Rio Grande Foundation, this supposedly "pro-business" coalition instead is arguing that the gross receipts tax (as opposed to taxes levied on employers) should fund the expansion of government health care plans. While the business coalition does at least stress the fact that, as Beverly McClure of ACI notes "about half of the state's uninsured already qualify for some kind of coverage or public program, and they still don't sign up." Nonetheless, if this coalition wanders down the path of higher taxation and bigger government, they are heading down the same path towards government-managed health care that Governor Richardson's failed plan did.

Rather than bigger government, New Mexico businesses must rally behind ideas like eliminating the gross receipts tax on health care, allowing individuals to purchase coverage across state lines, and reforming Medicaid (to name just a few ideas). These reforms -- unlike government programs -- will cut costs and increase coverage.

• posted by Paul Gessing
• 12:34 pm
• 1 comment

Monday, March 31, 2008

Citizens Can Weigh In on New Mexico's "Comprehensive Health Plan" 

By Paul Gessing

Categories:  New Mexico

Socialists and government bureaucrats have a knack for framing policy discussions in terms of more or less socialism rather than emphasizing individual freedom. This has certainly been the case in the debate over health care. Now, the state wants input on a "Comprehensive Health Plan" and is holding meetings around the state to get public comments.

Certainly, those of us who understand how markets and individual freedom work will probably be turned off by the very concept of a "comprehensive" plan put forth with the state intimately involved in the process. After all, we'd rather have a dispersed and decentralized health care "system" in which individuals retain control over such important decisions. Nonetheless, if advocates of free markets and less government involvement in health care ignore such meetings, we have no excuse when the socialists make policies we don't like.

If you can't go to the meeting, you can offer your comments here.

• posted by Paul Gessing
• 2:07 pm
• 0 comment

Friday, March 7, 2008

Regulating Health Insurance in New Mexico 

By Paul Gessing

Categories:  New Mexico

While most of the attention during New Mexico's recently-completed legislative session was on Governor Richardson's massive, government-managed health care proposal, apparently it wasn't the only health care reform considered during the session. In fact, Richardson just signed a new law that further regulates health insurance.

One provision in the law will make it more difficult for insurance companies to rescind coverage for people who develop serious medical conditions.

The cap on yearly medical services paid by health insurance policies offering certain minimum coverage also will increase from $50,000 to $100,000 under the new law. The higher limit starts next year.

Currently, an insurer can refuse to pay claims or rescind coverage if there were omissions or misstatements—sometimes even if inadvertent—about a person's medical condition or medical history in an insurance application.

That standard will change under the new law. Once a policy takes effect, insurers can deny claims or end coverage only if they show that an individual made "willful or fraudulent misstatements" in their application about a pre-existing medical condition.

Another change in the new law is to give people more time to obtain medical insurance after they lost coverage. It increases from 63 days to 95 days the "creditable coverage" period. That's the time in which a person without coverage receives credit for previously being insured.

While all of these policy matters may sound reasonable to the average citizen, each of these new regulations will further increase the cost of health insurance in New Mexico. Considering that Richardson is simultaneously working to mandate "universal coverage," it might seem odd that he would sign legislation to make insurance more costly. Unfortunately, it is perfectly consistent because the tendency is towards greater government involvement in all areas of health care.

• posted by Paul Gessing
• 11:34 am
• 0 comment

Friday, February 15, 2008

New Mexico Heads into Special Health Care Session 

By Paul Gessing

Categories:  New Mexico

New Mexico Gov. Bill Richardson has called a special session in an attempt to get his health care bill passed. This was no surprise given the governor's fixation on health care before the session began, but with little in the way of agreement on the issues, Richardson's move seems somewhat desperate. After all, even Speaker Ben Lujan, D-Santa Fe, said of the prospects for a special session, "It won't be fruitful for the governor to call a special session if there is not mutual agreement."

This is the rub. The House, which Richardson normally counts on for support, didn't even go along with the governor, but instead gutted the bill. The Senate is even further away from the Richardson than that.

Crazy things can happen in a special session, but if legislators seemed skittish about reforming health care in a short, 30-day session, it seems even less likely that they'll go along with the governor during a special session that is sure to be unpopular with legislators of both parties, particularly since they've already rejected his reforms once. Lashing out at those who don't go along with his wishes seems to be the governor's current mode of operation. Only time will tell whether legislators cow-tow to the governor's.

• posted by Paul Gessing
• 7:12 pm
• 0 comment

Wednesday, January 30, 2008

New Mexico's Largest Newspaper Endorses Richardson Health Plan 

Says New Mexico health care can't get worse

By Paul Gessing

Categories:  New Mexico

Somewhat surprisingly given its usually reasonable editorial opinions, the Albuquerque Journal endorsed Governor Richardson's health care plan. After all, as the paper concluded, "New Mexico's condition can only get worse."

We've heard this before. Richardson, in his state of the state address, repeatedly implied that health care in New Mexico cannot get worse than it is now. For starters, he said, "the status quo is unacceptable" and he went on to state "The most expensive choice is to do nothing." While advocates of radical change in our health care system seem genuine in their conviction that things can get no worse, what are the facts?

Yes, New Mexico has a disproportionately high rate of uninsured with 400,000 out of 2 million (third highest in the nation). While it may seem plausible to state that health care could get no worse, how about for the rest of us? Richardson's plan would force doctors -- as a requirement for licensure -- to accept whatever the state or insurance companies provide them in the way of payment. Clearly, both the state and insurance companies will have tremendous incentives to cut costs at doctors' expense, thereby forcing doctors out of the state.

Obviously, if ever-greater numbers of doctors are forced out of New Mexico, we could end up with even less access to actual health care (as opposed to insurance) for the 1.6 million insured and the 400,000 uninsured alike. Before embarking on a massive government program that even supporters view as "imperfect," we need to take a clear-eyed look at whether this supposed "solution" might actually make the current situation even worse.

• posted by Paul Gessing
• 12:16 pm
• 0 comment

Tuesday, January 29, 2008

Rio Grande Foundation President Discusses Richardson Health Care Plan on New Mexico's Largest AM Talk Station 

By Paul Gessing

Categories:  New Mexico

Rio Grande Foundation President Paul Gessing recently appeared on New Mexico's premier AM radio station, 770 KKOB to discuss Governor Richardson's health care reform plan and some free market alternatives. Listen to the show by clicking here (fast forwarding through the first quarter of the recording will get you past the advertisements, etc.)

• posted by Paul Gessing
• 6:50 pm
• 0 comment

Thursday, January 17, 2008

New Mexico's "Greedy" Doctors 

By Paul Gessing

Categories:  New Mexico

You can tell Bill Richardson is no longer running for President (and that he is a lame-duck governor). After all, who in their right mind that is running for office would attack an entire interest group for no good reason. Specifically, I'm referring to Richardson's comments that doctors are "greedy." Richardson said of doctors, "They're greedy. They shouldn't be so greedy. They should be part of the plan," in reference to his "Health Solutions New Mexico" plan.

Doctors oppose Richardson's plan in large part due to its reliance on price controls which would force doctors to take whatever payment is being offered by the government or insurance companies. This doesn't seem "greedy" to me, rather given doctors' experiences with Medicare and Medicaid, the prices of which are both determined by the federal government, doctors have a lot to worry about if they become even more beholden to the government for their daily bread.

Doctors spend a long time in medical school at great personal and financial cost to themselves. Most doctors I know are "greedy" only in the sense that they want to be fairly compensated for their work. In reality, Richardson is the greedy one because he wants to take credit for offering health care to more people with doctors, insurance companies, and businesses footing the bill. That's greedy.

• posted by Paul Gessing
• 10:30 am
• 1 comment