Fiscal Analysis of New Mexico’s Health Security Plan

The New Mexico Health Security Act (HSA) would create a state-administered health insurance program (“Health Security Plan,” or HSP), with the goal of providing universal health insurance coverage and access to affordable, high-quality health coverage for all state residents. In 2019, the House Appropriations and Finance Committee and the Senate Finance Committee made appropriations to the Legislative Finance Committee (LFC) for a fiscal analysis of the HSP (House Bill 548 and Senate Bill 536).

KNG Health is leading a team of consultants to support the LFC by performing a fiscal analysis of the HSP. While the HSA provides a framework for expanding coverage, many policy details were not specified. Our team collaborated with legislative staff to develop alternative versions of the proposal with sufficient detail to facilitate budgetary scoring. We then used a microsimulation modeling approach to evaluate the impact of each version of the proposal on insurance coverage, healthcare spending, the local economy, and the state budget. Our final report, which will be submitted by mid-2020, will be used by the state legislature to assess the feasibility of this approach to healthcare reform.

On May 22, 2020, KNG Health Consulting released a preliminary report, “Fiscal Analysis of New Mexico’s Health Security Plan,” available here, along with a press release, available here. The purpose of releasing the preliminary report is to solicit feedback from stakeholders, including the state. The draft and the results contained within are preliminary and subject to change.

Public comments are requested on the draft report and will be accepted until June 8, 2020, close of business, Mountain Time. Please send comments to Nathan Eckberg (

Prior to the release of this preliminary report, we held two meetings to inform the public about this research and to solicit feedback. We held a public meeting at The University of New Mexico in Albuquerque on December 4, 2019, and a second public meeting in the New Mexico State Capitol in Santa Fe on March 3, 2020.

At a public meeting on December 4, 2019, we presented an overview of the study with a slide deck. Notes from the meeting are available here.

At a public meeting on March 3, 2020, we presented an overview of our analysis plan with a slide deck.  The draft analysis plan is available here.

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