New Mexico Health Care CEOs Look to Help State Cut Medicaid Costs

A New Mexico lawmaker has asked the state's "major health care CEOs" to help the state resolve a dispute over the budget for the Medicaid program, a problem that is holding up completion of the state's overall $3.9 billion budget, the New Mexico Business Weekly reports. Gov. Gary Johnson (R) and the state Legislature thus far have been unable to agree on how much of an increase the Medicaid program should receive during the next fiscal year, which begins July 1. Johnson has proposed a $10 million increase for the program, as well a reduction of its current income eligibility limit, which is 235% of the federal poverty level, or $42,000 for a family of four. The Business Weekly does not report the reduced level Johnson is seeking. For its part, the state Legislature had approved a $35 million increase for the Medicaid program, but Johnson vetoed it. Johnson has said that he will not call lawmakers back into a special session to resolve the dispute unless they agree on a compromise budget beforehand, prompting legislative leaders to enter negotiations. To help end the impasse, state Rep. Ted Hobbs (R) asked five CEOs from insurance companies, hospitals and health systems to examine the problem. "It is clear that the primary divider was the difficulties with Medicaid, so I convened a group of CEOs and sat them in the same room," Hobbs said. He added, "I figured I had a stroke of brilliance in pulling them together because I don't think they were asked enough for input [before] ... so my hope is that they will come up with something." Martin Hickey, CEO of Lovelace Health Systems Inc., said the committee has not reached any solutions but is trying to develop tools that lawmakers can use to contain Medicaid costs (Domrzalski, New Mexico Business Weekly, 3/25).