Friday, July 27, 2012

Letter from Medicaid Coalition asking Governor Martinez to Expand Medicaid

July 11, 2012

The Honorable Governor Martinez
Office of Governor Susana Martinez
490 Old Santa Fe Trail, Rm. 400
Santa Fe, NM 87501


Dear Governor Martinez:

We, the undersigned organizations—representing thousands of New Mexicans—urge you to implement the Medicaid Expansion for low-income adults under the federal Affordable Care Act. We believe it is the right thing to do for New Mexicans and is a win-win situation for New Mexico. Here are just some of the benefits:

  • Expanding Access to Health Care. Medicaid Expansion will provide health coverage for well over 100,000 New Mexicans, most of whom are “working poor” adults—they have jobs but no health insurance. When they get any health care, it’s likely to be in the emergency room at great expense. Medicaid coverage will mean these individuals can get check-ups and preventive services, follow-up care for accidents or illnesses, and management of chronic diseases. This is a golden opportunity to reduce New Mexico’s high rate of uninsured and bring us up from the bottom of the national rankings on health coverage. Far beyond statistics, this is literally a matter of life and death for people who otherwise can’t afford insurance or routine health care.

  • A Real Bargain for the State. The federal government will pay the entire cost of the expansion for the first three years. The federal share then will gradually phase down to 90% for 2020 and thereafter. The most the state will ever pay is just ten cents on the dollar. Even that minimal portion of the cost will be more than covered by revenues to the state from existing health care taxes generated by the Medicaid Expansion. Additionally, the expansion will save the state $40 to $60 million annually because we’ll no longer have to fund the State Coverage Insurance program.

  • New Mexicans Will Get the Benefits of Our Own Tax Dollars. Many other states will choose to expand Medicaid and the costs will be paid mostly by federal dollars. If New Mexico does not expand Medicaid, we will still be paying federal taxes to support other states’ programs without getting the benefits of health care coverage for New Mexicans.
  • Fairness. The federal law was written assuming that low-income people could get coverage through Medicaid. They are not eligible for subsidies to buy private insurance. If New Mexico refuses to expand Medicaid, poor families—including parents and people working for low wages—won’t have the means to afford it.

  • Economic Stimulus and Jobs. Federal Medicaid funds for the expansion will inject billions into New Mexico’s economy starting in 2014. The economic activity generated by these new federal dollars will create tens of thousands of new jobs in our state, especially in rural areas, and increase revenues to state coffers.

  • Reduce Uncompensated Care. New Mexico hospitals and other health care providers furnish an estimated $335 million in uncompensated care every year. When people have health coverage like Medicaid, doctors, hospitals, and other health care providers can count on getting paid for their services. That’s not only good for the providers, but it also reduces the burden on local governments to help cover these costs through their County Indigent Funds, which are paid for by taxpayers.

  • Lower Health Insurance Premiums. Uncompensated care also raises insurance premiums for everyone as hospitals and other providers try to recover those costs. A typical New Mexico family with private insurance pays an estimated $2,300 extra each year to cover uncompensated care. Because we have the second highest percentage of uninsured residents in the country, this cost-shifting to insurance premiums is particularly high in New Mexico—and it will continue if we leave people uninsured rather than covering them through the expansion of Medicaid. Businesses that pay for health insurance for their employees will be big losers if the state does not expand Medicaid coverage.

  • Health care for Veterans. Half of all uninsured veterans will be eligible for health care coverage under the Affordable Care Act. A refusal to expand Medicaid to low-income adults will leave many of these veterans without access to health care coverage.

For all these reasons we urge you to protect all New Mexicans by implementing the Medicaid Expansion and bringing the federal funds to cover our poorest citizens. We welcome the opportunity to meet with you and/or members of your staff should you have any questions or would like to discuss this further.

Sincerely,

New Mexico Voices for Children
New Mexico Center on Law and Poverty
Health Action New Mexico
Southwest Women’s Law Center
Equality New Mexico Foundation
New Mexico Religious Coalition for Reproductive Choice
Interfaith Workers’ Justice New Mexico
New Mexico Alliance for Retired New Mexicans

CC: Secretary Catherine Torrez
Secretary Sidonie Squier
Members, New Mexico Legislature
David Abby, Director, Legislative Finance Committee

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