A Cautionary Tale from the New Mexico Roundhouse

Today, we welcome a guest blog from Roxane Spruce Bly, Executive Director of Health Action New Mexico.

New Mexico Legislature: The More Things Change, the More They Remain the Same -- Roxane Spruce Bly

We had high expectations for health care reform leading into the 2009 New Mexico State legislative session. A special session in August 2008 had resulted in an appropriation of $30 million to ensure coverage for New Mexico’s children. The November 2008 elections had resulted in a significant increase in the number of progressive Democrats in both the state House and Senate. A more progressive Senate could challenge the existing Senate leadership and change its dynamics potentially allowing key progressive issues to pass the upper chamber where they have historically died in the Senate Finance Committee or failed during floor votes.

In early December 2008, our Governor, Bill Richardson, was nominated to a position on President Obama’s cabinet and our Lt. Governor, Diane Denish, was in line to take his place as New Mexico’s first female Governor. While health care reform had been a priority for Governor Richardson during his presidential run in early 2008, the Lt. Governor’s relationship with the state legislature was reportedly more collegial and potentially more likely to result in meaningful health care reform at the state level during the 2009 session.

When the session opened in mid-January, the state was facing a budget shortfall estimated to exceed $450 million due to plummeting oil and gas prices, the Governor abandoned his cabinet bid due to a federal grand jury investigation into alleged “pay to play” activities, and a failed challenge to the existing state Senate leadership revealed an alliance between conservative Democrats and Republicans inclined to protect the interests of the status quo. These factors did not bode well for health care reform and three bills designed to achieve universal coverage for New Mexicans stalled at various points in the legislative process.

The first, HB 267, the Health Care Authority Act, would have created an independent Health Care Authority to examine the underpinnings of our current health care system: cost, access, and quality. The comprehensive, independent analysis completed by subject matter experts with no vested interest in the status quo would have developed a plan for universal coverage by 2011. The second, HB 339 and SB 281, the Health Security Act, would create a citizen and consumer-oriented governing body to oversee the implementation of a plan to achieve universal coverage that shifting the role of private insurance in the state. The third, HB 779, the Health Care Partnership Act, would have created a partnership between six state agencies and entities tasked with many of the core functions of the Health Care Authority and developing a publicly funded health plan in addition to the existing private insurance-based system.

The Health Care Authority Act, sponsored by Rep. Mimi Stewart was introduced in the House and assigned to three committees – typically a sign that a bill has neither the support of the Speaker, Ben Lujan or Governor Richardson due to their close relationship. Despite the odds, the Health Care Authority Act had strong public and legislative support passing unanimously through every committee and the House floor by a vote of 60-2. When it reached the Senate it was assigned to two committees, passing through Senate Public Affairs and stalling in Senate Finance where it never received a hearing. The Health Security Act, sponsored by Rep. Bobby Gonzales on the House side and Sen. Carlos Cisneros on the Senate Side, was assigned to three committees in each chamber and stalled before reaching a floor vote in either of them. The Health Care Partnership Act, sponsored by the Speaker of the House, Ben Lujan, received fewer committee assignments, but narrowly passed the House by a 36-30 vote. Assigned to just one committee on the Senate side it too died in Senate Finance without being heard.

So what happened to reform in New Mexico? It died. Huge revenue shortfalls, a politically wounded Governor, and a failed legislative power shake-up ultimately killed progressive initiatives.

What’s the moral of the story? A Democratic majority in the state legislature and a Democratic Governor don’t guarantee health care reform. Nation: Beware.