N.M. health reform cost projections drastically reduced

Lawmakers have been given drastically reduced estimates of what health care reform would cost New Mexico. Gov. Bill Richardson wants the Legislature to enact a universal health coverage plan — a combination of government programs and private insurance — that would require New Mexicans to be insured.

Two weeks ago, legislators were told that the governor's proposal would require state government to increase spending by about $75 million in the 2010 budget year. That's in addition to the $880 million the state is already projected to spend on health care that year.

Now, the increased-spending figure in 2010 has been revised to less than $30 million.

And the projected additional cost of the governor's proposal over a five-year period was reduced from the $333 million forecast two weeks ago to about $72 million.

Mathematica Policy Research, Inc. has been studying various reform proposals for the Legislature. It blames a computer error for the earlier, higher figures.

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