New Mexico considers expanding Medicaid enrollment after containing costs in recent years

New Mexico Medicaid spending has been contained enough to ease eligibility rules, New Mexico Human Services Department Secretary Pam Hyde told state legislators last week, the Santa Fe New Mexican reports.

State spending on Medicaid is expected to increase by 7%, or about $44 million, for the next fiscal year, compared with double-digit increases in recent years, Hyde said.

In addition, the agency also no longer needs to seek supplemental funding from state lawmakers and has settled about $108 million in past claims by health care providers, according to Hyde.

She added that two proposals by Gov. Bill Richardson (D) would increase spending by allowing more residents to enroll in Medicaid. One proposal would allow a family of three with an annual income of $16,600 to qualify for Medicaid.

The current income limit for families of three is 30% of the federal poverty level, or $4,700 annually.

The proposal would allow 42,000 residents to qualify for the program and would cost the state an estimated $62 million but generate $190 million in federal matching funds, the New Mexican reports.

Another proposal would expand the State Coverage Insurance program to people with annual incomes up to 300% of the poverty level.

The current income limit for the SCI program is 200% of the poverty level.

The proposal would cost the state $15 million per year and generate $57 million in federal matching funds, according to estimates by the state Human Services Department.

State general-fund spending on Medicaid is expected to reach $669.5 million in FY 2008, but the projections do not include the impact of anticipated cuts in federal spending, Hyde said (Miles, Santa Fe New Mexican).