Guv scales back health-care proposal

Admitting the political reality of the situation, Gov. Bill Richardson has scaled back his health-care plan for the special session that begins Aug. 15 to focus on children. Meanwhile, the attorney general has given his stamp of approval to another effort by Richardson to expand health-care coverage in New Mexico.

The Santa Fe New Mexican has the scoop on Richardson’s new proposal, which his administration developed after lawmakers balked at an expensive universal health care plan Richardson pushed earlier this year during the regular session and remained skeptical about through months of negotiations since.

The new plan would require all parents to insure children 18 and younger. The state, according to The New Mexican, estimates that 50,000 children lack insurance, and insuring them will cost $58 million.

Richardson plans three bills, according to The New Mexican:

• The first would require parents to prove that their children have health insurance when they enroll them in day care or school. Though there would be no penalty for not enrolling, the bill would help the state reach those whose children aren’t insured and might qualify for an existing program. The bill would also create a state agency to consolidate administration of benefits to public employees.

• The second bill would call for at least 85 percent of premiums that health insurance companies pay to be spent on health care services, The New Mexican reported.

• The third bill would set standards for ensuring the privacy of electronic medical records.

Senate President Pro Tem Tim Jennings, D-Roswell and one of the leading skeptics of the governor’s universal health care proposal, appeared less hesitant about Richardson’s new plan in an interview with The New Mexican.

“I think that’s probably pretty agreeable to do kids only,” Jennings said, adding that he remains concerned about whether the state can afford the proposal.

Guv can require that contractors offer insurance

Meanwhile, the office of Attorney General Gary King on Wednesday issued an opinion stating that the governor can require state contractors who employ six or more employees to offer health insurance to employees. Richardson issued the order in October, and it took effect in July.

“The attorney general’s decision… upholds the governor’s power to make policy decisions to benefit New Mexico’s families,” Richardson spokesman Allan Oliver said in a news release. “State government will continue to require state contractors to provide health coverage to their employees.”

King’s opinion was sought by Senate Minority Whip Leonard Lee Rawson, R-Las Cruces.

Rawson said in an e-mail that his real interest wasn’t whether Richardson could issue the order but was the second question he asked in his request to King: whether contractors could account for health coverage benefits as part of the prevailing wage.

“General King’s opinion basically states that the (executive order) is not law and health insurance premiums can continue to be deducted from the fringe benefits portion required on prevailing wage jobs,” Rawson said. “I totally agree with his opinion.”