New Mexico Measure Would Impose Restrictions on Insurers

Tags: insurers | legislation | New Mexico | premiums

New Mexico insurers would be required to commit 85 percent of premiums toward actual healthcare services, under provisions of a bill passed by the state legislature, according to a story in New Mexico Business Weekly.

Insurers can currently apply this money to administrative costs and profits.

Under the bill, introduced by state Rep. John Heaton, D-Carlsbad, direct healthcare services include case and disease management, health education and promotion, preventive services and quality incentive payments, according to the story. Not included in such services are care coordination or utilization review or management.

Many New Mexico healthcare providers support the measure, including Presbyterian Healthcare Services and Lovelace Health Plan, which insures 210,000 members, according to the story. Gov. Bill Richardson has also voiced support for the bill and is expected to sign it.

Read the New Mexico Business Weekly report on New Mexico insurer premiums.

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