On Monday, the 2019 Legislature-sanctioned study into the cost of Gov. Michelle Lujan Grisham’s “universal health care” proposal was released. The study which was conducted by Maryland-based KNG Health Consulting reportedly cost the state $390,000 in taxpayer funds and showed multiple red flags to the Governor’s plan.
The study found that it would “improve affordability for low-income households,” while skyrocketing premiums for other families, and employer contributions. Payroll taxes likely would go up to pay for what could be as much as a $5.8 billion shortfall for the program over the first five years of the program.
“Still, additional funding sources may be needed to fully cover the cost of the program, depending on the structure of the plan,” the report states, despite it taking away funding from “duplicate” funding programs to help pay for it.
According to the Associated Press, the report “also states that the use of health care services would likely increase as the vast majority of residents turn to public insurance.”
“Under a state-administered plan, some segments of the private insurance industry would disappear, resulting in financial hardship to New Mexico households and businesses that are dependent on the industry, the report stated,” writes the AP.
Despite the deficit the plan would create, as well as the massive ramifications to working families and small businesses, which includes an increase in taxes, Gov. Michelle Lujan Grisham insists that the universal health care program is “a non-negotiable priority” for her administration.