The Financial Impact of Alternative Health Reform Plans in New Mexico

By: The Lewin Group, Inc.
Authors: John F. Sheils and Randall A. Haught
Published: November 30, 1994
Financed by: New Mexico Health Policy Commission
Legislation analyzed: none, plans analyzed were developed by the New Mexico Health Policy Commission.

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In this analysis, we assume that these health reform plans would first be implemented in 1998. We estimate total health spending in New Mexico would decline by about $151.8 million under the single payer model while health spending would increase by about $43.7 million under the multi-payer model (Exhibit 7). Under both reform plans, utilization of health services will increase by about $207.6 million as coverage is extended to the uninsured. However, this increase in utilization will be more than offset by administrative savings of $359.4 million under the single-payer model.