Even though New Mexico’s economic recovery lags far behind the rest of the nation, fewer and fewer of our low-income children are enrolled in the state-federal health care program New MexiKids (Medicaid and CHIP). In the last month alone, more than 1,200 children lost their health care coverage, according to the state’s monthly enrollment report. Worse, the number of children with coverage has dropped in more months than it has increased under Governor Martinez, and there are fewer children enrolled now than in January 2011 when she took office. (By contrast, Governor Johnson enrolled tens of thousands of children during his tenure and Governor Richardson’s administration enrolled 30,000 more children in the last three years of his administration.)

Given New Mexico’s lousy job-creation record, we can assume that the drops in enrollment are not because low-income parents suddenly got jobs and now have private health insurance coverage. Clearly something else is at work.

A large part of the enrollment drop is that the state has stopped funding for all outreach and enrollment activities for children. Many parents simply do not know that their children are eligible for no-cost or low-cost health insurance and some need help navigating the system. The Human Services Department (HSD) has also refused to adopt ‘express lane’ policies to simplify enrollment for low-income families that also qualify for other assistance programs. They even require parents to produce proof of citizenship on their child’s first birthday so the child’s enrollment in New MexiKids can continue—even though the child is obviously a citizen because they were initially enrolled by the state when they were born in a New Mexico hospital the year before! None of this is surprising, given that HSD initially sought to redesign the state’s Medicaid program in order to cut costs.
Failing to cover kids under Medicaid because of cost is penny wise and pound foolish. Children are cheap to insure (less than $1,000 a year for the state) but the payoff in terms of better health and education outcomes is high. Besides immunizations, most children need well-child checkups and the occasional doctor’s visit for the cold or flu. It’s when those well-child checkups catch a developmental delay, which can then be treated before it sets a child’s normal development back, that the program really pays off—for the state as well as the child.

Fortunately, New Mexico is one of the states wisely taking advantage of the opportunity to expand Medicaid to low-income adults under the Affordable Care Act (ObamaCare). Because low-income parents will be expected to apply, their children who are qualified but not already enrolled in New MexiKids will also be signed up. But early enrollment isn’t set to begin until October and coverage doesn’t begin until January 2014.
The Affordable Care Act provides a unique opportunity to improve our children’s health. Better health means better outcomes in school and in life. Let’s do what’s right by our kids and make sure that the implementation of ObamaCare and the Medicaid expansion for adults is well-planned and executed so all of our eligible children are enrolled in New MexiKids.

Tax day is right around the corner, but some low-income New Mexico families will not file a return because they do not owe any income tax or are not getting a refund for taxes that were withheld from their earnings. That can be a big mistake. Many such families may qualify for refundable tax credits. “Refundable” means that working families can file and receive the credit even if they earn too little to pay taxes and/or are not getting a refund for taxes that were withheld from their earnings.

Unfortunately, working families forego millions of dollars in unclaimed tax credits when they fail to file. This isn’t just bad for low-income working families who really need the assistance; it also means a lost opportunity to positively impact the economy.

The money from tax cuts and credits that go to low-income families are very likely to be spent—which is good for the economy.  Consumer demand creates jobs. That’s why some low-income tax credits were raised as part of the federal stimulus bill of 2009. Tax cuts for middle- or high-income families can also create jobs—if the money is spent. But families with higher earnings are more likely than low-income families to set the money aside in savings. Because people often spend their tax refunds where they live, these credits help boost the local economy. This is particularly good for New Mexico’s rural areas.

One of the best-known low-income refundable credits is the Earned Income Tax Credit (EITC). This federal program provides more than 27 million hard-working American families a refundable credit. It is considered one of the most effective anti-poverty initiatives, and it has always enjoyed bipartisan support. Eligible families may receive a refundable credit up to $5,891 for the 2012 tax year.

New Mexico has a state-level EITC, called the Working Families Tax Credit (WFTC). The state credit is worth 10 percent of the federal credit, is also refundable, and is available to most filers who qualify for the EITC. In 2011 alone, the WFTC returned almost $49 million to New Mexico’s low-income working families.

 Earned Income Tax Credit

In order to qualify for the federal EITC for tax year 2012, your adjusted gross income (AGI) must each be less than:

• $45,060 ($50,270 married filing jointly) with three or more qualifying children: $5,891
• $41,952 ($47,162 married filing jointly) with two qualifying children: $5,236
• $36,920 ($42,130 married filing jointly) with one qualifying child: $3,169
• $13,980 ($19,190 married filing jointly) with no qualifying children: $475

In additional to the WFTC, New Mexico has several tax provisions that help working families, including:

Low-Income Comprehensive Tax Rebate

• Filers whose AGI is $22,000 or less may claim this credit.

Low- and Middle-Income Tax Deduction

This personal income tax exemption for low- and middle-income taxpayers is available if your AGI is less than:

• $36,667 for single persons
• $55,000 for married persons filing jointly, surviving spouses, and heads of household
• $27,500 for married persons filing separately

The deduction amount depends on income levels, but the maximum is $2,500 for each person claimed as an exemption.

Child Day Care Credit

New Mexico parents who have AGIs of $30,160 or less may claim this credit (not to exceed $1,200) for child care expenses for dependent children when the child care enables the parent’s gainful employment.

Help with Filing Tax Returns

Among the reasons low-income families may not file tax returns are that they don’t know how and can’t afford to pay a professional to do it. Free assistance with filing federal and state tax returns is available for low- to moderate-income families and to the elderly through several programs:

CNM runs Tax Help New Mexico, which has sites across the state (http://www.cnm.edu/depts/taxhelp).

The IRS runs the Volunteer Income Tax Assistance (VITA) program in sites across the state (http://www.irs.gov/Individuals/EITC-Home-Page–It%E2%80%99s-easier-than-ever-to-find-out-if-you-qualify-for-EITC).

The state’s Taxation and Revenue website also offers several resources on how to claim these benefits (http://www.tax.newmexico.gov).

Kwaku Sraha is NM Voices for Children’s Business Manager

by Gerry Bradley

It sounds like something out of a political thriller movie: hastily cobbled together legislation is railroaded through with a vote in the closing minutes of a session. The truncated debate that takes place is woefully uninformed because no one has had time to read the bill. Nor is there time for public input. This scenario did not play out in Hollywood, but in Santa Fe when legislators were given 35 pages worth of amendments to House bill 641 and told to vote on it before the clock struck 12. What they were not given was any meaningful information about the fiscal impact of what they were voting on. In fact, they were misled.

Tom Clifford, the Secretary of the Department of Finance and Administration, and one of the architects of this package of huge corporate tax breaks, was given the microphone on the floor of the House in the closing minutes of the session so he could reassure legislators that the bill would be “revenue positive” every year. He actually made that statement twice—and both times it was wrong.

A few days later—when the Legislative Finance Committee released its fiscal impact report (FIR)—it became clear that HB-641 will NOT be revenue positive but will, in fact, cost the state tens of millions of dollars within the first three to four years.

Legislators should not be expected to vote on an omnibus tax bill before the proper fiscal analysis has been completed. Such bills are too complex and the consequences too important. Nor should they be pushed into passing legislation under the threat of a budget veto by the governor.

The two main (and most expensive) portions of the bill give breaks to manufacturing companies and profitable corporations. We are told that these two provisions will make New Mexico more “competitive” with other states when it comes to luring business here. This is a deviation of the worn-out notion that tax cuts at the top will trickle down to jobs at the bottom (or, perhaps, somewhere in the middle). But, after 40-some years of this economic experiment, we’ve pretty much learned that it simply doesn’t deliver on its promises.

There is, in fact, absolutely no evidence that corporate income tax cuts create jobs. There is, however, abundant evidence that tax cuts starve our state budgets of funding for vital services like education, public safety, and health care. The upshot is, New Mexicans will either have to live with fewer services or will have to pay higher taxes to make up for the lost revenue.

These cuts are being paid for, in part, by the state reneging on a promise it made to cities and counties regarding revenue the state no longer wants to pass along. To help the municipalities recoup this loss, the legislation kindly allows them to raise taxes on the rest of us. Which they probably will.

In other words, profitable corporations are getting tax cuts on the backs of New Mexico’s children and working families.

To add insult to injury, the Governor—who is not likely to veto this bill—has promised to veto a bill that raises the minimum wage. Her reasoning there is just as flawed as trickle-down economics. She claims raising the minimum wage will make New Mexico less competitive with other states for new jobs. That’s only true if you’re hoping to lure low-wage jobs to the state (and, really, we have enough of those already). If you’re trying to create decent jobs by reviving the economy, putting money into the hands of the people most likely to spend it is a really good idea.

Governor Richardson promised that his personal income tax cuts of 2003 would create jobs because companies would relocate their corporate headquarters here so their highly paid staff could benefit from the low top tax rate. A decade later, we’re still waiting for those jobs to appear. We suspect that, once it becomes clear that this year’s tax cuts are also not creating jobs, some legislators may regret their 11th-hour vote.

To paraphrase an old saying: Pass a bill in haste; regret in leisure.

Gerry Bradley is NM Voices for Children’s Senior Researcher and Policy Analyst

If you worked but earned less than $50,000 last year, you may qualify for a refundable tax credit called the Earned Income Tax Credit (EITC) –as much as $5,891.

Today is National EITC Day, a nationwide effort to increase public awareness about the benefits of the federal Earned Income Tax Credit. The EITC is a refundable federal tax credit available to low-income working individuals and families.  It helps people who work hard meet basic needs, stay off welfare, and give their children a better chance to thrive. New Mexico’s Working Families Tax Credit (WFTC) is based on the EITC and provides additional benefits for New Mexico’s working families and communities. 

The EITC has been making the lives of workers a little easier for more than 37 years.  Yet the IRS estimates that nationwide one in five eligible workers still miss out on the EITC, either because they don’t claim it when filing, or don’t file a tax return. This is money that can make a difference. Last year alone, New Mexico’s working families received nearly $490 million from the federal EITC and an estimated $49 million from New Mexico’s WFTC.  The average combined EITC and WFTC amount in New Mexico last year was $2,500 per tax return.

The amount of the EITC varies by income, family size, and filing status. The EITC is for workers whose income does not exceed the following limits:

• $45,060 ($50,270 married filing jointly ) with three or more qualifying children
• $41,952 ($47,162 married filing jointly) with two qualifying children
• $36,920 ($42,130 married filing jointly)  with one qualifying child
• $13,980 ($19,190 married filing jointly) with no qualifying children

The online EITC Assistant can help determine your eligibility and estimate the amount of your credit. Free help preparing your return and claiming the EITC is available at volunteer income tax assistance sites such as CNM’s Tax Help New Mexico locations across the state.  To find a location near you, visit CNM’s Tax Help website or call 505-224-4829. You may also call the IRS at 1-800-906-9887 for assistance.

People who work full-time should not have to live in poverty. Refundable tax credits like the federal EITC and New Mexico’s WFTC are boosts to working people and their families, and they allow more funds to flow into New Mexico communities.  The credits can and do make working families’ lives a little easier.  See if you qualify today.

Amber Wallin is a Policy Analyst for NM Voices for Children

New Mexico is being pushed towards a ‘fiscal cliff.’ You’ve probably heard about the automatic spending cuts to defense programs that will take place unless the U.S. Congress acts before the end of the year. What you’ve heard less about is how New Mexico will also lose more than $41 million in federal funds to state social programs. Education programs will be hardest hit with cuts that will mean fewer teachers, bigger class sizes, and reduced training for the kind of high-tech jobs the state hopes to draw.

These automatic cuts—known as sequestration—will go into effect in January 2013 if Congress does not pass an alternative deficit reduction package. And while it’s right to be concerned with the scheduled cuts to defense funding—given New Mexico’s military bases and national labs—we cannot ignore the cuts to education, health, and employment programs.  

Cuts in both defense and nondefense spending will lead to a direct loss of jobs. But cuts to nondefense programs will mean that the state will be less able to provide the kinds of support services unemployed New Mexicans will need and right when they need them most! Other nondefense cuts, like those to education and early childhood programs will slash investments in New Mexico’s kids. Such significant losses in federal funds would be extremely painful for the state’s already fragile economy and its future.

As detailed in a report just released by NM Voices for Children, decreased funding to education, health, and employment budgets will mean both lost jobs and reduced services for New Mexicans. It will mean fewer teachers, decreased health services, and less support for underemployed New Mexicans. New Mexico already has one of the worst poverty rates in the nation. Further cuts to nondefense programs will not only make this worse, but will also further hobble the pace of economic recovery by putting more people out of work and cutting job training programs. 

And while deficit control is important, it is essential to understand where the deficit comes from in order to effectively reduce it. As a recent study by the Center on Budget and Policy Priorities shows, by 2013, the Bush-era tax cuts for the richest Americans, two unfunded wars, and bail outs of big corporations will be the biggest contributors to the federal deficit. Social programs are not to blame for the deficit and those most in need of them should not suffer to fix a deficit they did not create.   

We cannot rely on short-sighted cuts to vital services to bring about deficit reduction. Congress should act immediately by passing a balanced deficit reduction package that includes revenue increases as well as budget savings. Revenues should be raised by closing tax loopholes and letting the Bush tax cuts expire for the wealthiest Americans. Cuts-only plans like the budget authored by Representative Paul Ryan that put an unfair burden on crucial social programs for families hardest hit by the recession must be rejected.

Right now, in our state and in the nation, people are still hurting. We are just beginning to recover from the worst of the recession, now is not the time to slash budgets that help those who were hardest hit. Now more than ever we need to focus on strengthening New Mexico’s future. We need great teachers and accessible health improvement programs. We need unemployment supports and training for high-skill jobs. In order to do this, we must invest in our future by supporting policies and candidates that take a responsible and balanced approach to deficit control. 

Amber Wallin is a Policy Analyst for NM Voices for Children

Our federal work is funded by grants from First Focus and Voices for America’s Children

Raising the Minimum wage is good for residents of Albuquerque, their families, small businesses, and the city’s economy. As the great recession continues to be felt across New Mexico, leaders and policy makers are looking for ways to keep the city’s economy healthy. Raising the minimum wage to $8.50 an hour, and automatically increasing it each year to keep up with the cost of living, would not only greatly help the many hardworking individuals and families struggling to survive on the current $7.50-an-hour wage, it would also aid Albuquerque’s economic recovery.

The question to raise the city’s minimum wage will be on the ballot for the November 6^th general election. While this in itself is a victory, there is still a lot of work and education to be done before election day. Opponents have caused great confusion about how a minimum wage increase would affect employment. The fact is, it would create jobs. One easy way to understand the issue is this: raising the minimum wage allows working families to pay for basic necessities—rent, food, child care, transportation, and health care. Unlike higher paid workers who can save a significant portion of their income, minimum wage earners spend all of their wages on day-to-day necessities, When that money is circulated back into the economy jobs are created.

At the current minimum wage of $7.50 an hour, a full-time, year-round worker in Albuquerque earns just $15,600 a year. It would be hard enough for a single person to survive on this income, so imagine trying to support a child or two on this salary. Studies suggest that close to 40 percent of workers who would benefit from a minimum wage increase have children. The Economic Policy Institute has released an analysis of the impact of raising the Albuquerque minimum wage that shows that 14.3 percent of workers would see their hourly wage jump to $8.50 if voters approve the measure in November.

Opponents of raising the minimum wage argue that it would hurt the very people we are trying to help by reducing employment opportunities. There is no basis for this argument. The impact of wages on employment levels is one of the most heavily studied issues in economics—and a higher minimum wage does not adversely affect employment. A study just released by NM Voices for Children looks at Santa Fe, which has raised its minimum wage to $10.29 an hour. Santa Fe has an unemployment rate of 5.8 percent—the lowest of the state’s four metropolitan areas. It is also the only city of those four that has had any job growth.

A series of rigorous studies by the Institute for Research on Labor and Employment at the University of California, Berkeley, found that higher minimum wages have no adverse effects on employment levels. The report Minimum Wage Effects across State Borders looks at neighboring states with different minimum wages. Researchers compared all the counties that are located on a border between two states with different minimum wage levels. Looking at data from 1990 to 2006, they found that employment levels were not impacted in counties that had higher minimum wages than their neighbors in a bordering state.

Consumer spending drives the economy. A minimum wage of $8.50 will increase consumer spending and is, therefore, an effective strategy for improving our economy. A minimum wage increase in Albuquerque is long overdue. Boosting the wages of low-income workers who could then purchase the goods and services they need is good medicine for Albuquerque’s economy.

Kwaku Sraha is NM Voices’ Finance Manager

Bill Jordan and I testified recently in Las Cruces about the health and economic benefits to the state from fully implementing the Affordable Care Act (ACA). The audience was the Legislative Revenue Stabilization and Tax Policy Committee. Bill explained that $8 to $11 billion of new federal funds for health care will enter the state economy as a result of the ACA if the state chooses to insure all lower income adults through Medicaid. The expense will be completely covered by the federal government from 2014 through 2016, and then phase down to 90 percent in 2020, where it will remain indefinitely. The state’s Human Services Department (HSD) has estimated that the state costs over the first seven years will be between $320 and $500 million.

Bill pointed out a study by economist Kelly O’Donnell, PhD, commissioned by NM Voices, that shows the state will take in twice that amount — between $693 and $953 million — in new state revenues during those first seven years. This revenue will come in thanks to existing state tax laws.

Most of the federal ACA funds — including both Medicaid and the tax subsidies to help middle-income families buy health insurance on the new Exchange — will be paid initially to insurance carriers and therefore will be subject to the state’s Insurance Premium Tax. Portions of the spending will also be subject to the gross receipts tax (which also generates revenues for local governments, which won’t have to spend any money on the ACA). 

Bill explained that there is no significant up-front cost to the state. The state costs will ramp up very gradually starting in 2017 and will always be less than the state tax revenue generated by the much larger federal spending, as show below. 

I reminded the Committee that, for uninsured New Mexicans, this is literally a matter of life and death. It is estimated that more than 300 New Mexicans die every year because they don’t get the kind of medical treatment they need due to not having health insurance. Having health insurance means people can get the kind of preventive and follow-up care that saves lives (and saves money). 

I also pointed out that the Hilltop Institute report commissioned by HSD estimates that the state’s hospitals will save more than $2 billion in “uncompensated care” costs during the 2014-2020 period. These are the costs incurred by our hospitals when treating uninsured patients, mostly in the emergency room. These costs get passed along to all of us as higher local taxes and higher insurance premiums. Getting many more New Mexicans covered by health insurance will help lower these pass-along costs. 

Link to the Las Cruces Sun-News coverage of the hearing here.

Link to the Albuquerque Journal’s editorial in favor of expanding Medicaid here.

Nick Estes is a Deputy Policy Director at NM Voices

The Supreme Court decision on ObamaCare has put the health care of 150,000 New Mexicans in the hands of Governor Martinez. When the Court struck down the penalty for not expanding Medicaid coverage for low-income adults, it essentially gave all 50 governors the ability to decide the fate of their states’ most vulnerable residents. To date, a handful of governors have said they will not expand Medicaid, while about a dozen have already opted in.

Governor Martinez initially said she was concerned about the cost to the state and therefore would study the issue before making a decision. Since then New Mexico Voices for Children, the Bureau of Business and Economic Research, and independent economists have all said the state’s cost of expansion would easily be covered by existing taxes on all those federal funds that ObamaCare will send to the state. It’s now clear that the governor cannot credibly oppose the expansion because of the cost.

More recently, the governor’s administration has said they have a series of “questions of great importance” that they are asking the federal government before making a decision. While we don’t know what those questions are, we remain concerned that the state may seek to weaken the coverage, narrow the eligibility, or otherwise shortchange our most vulnerable uninsured adults.

We’re hearing some of the reasons other governors are citing to deny care to their low-income adults, so let’s look at them and whether they are valid.

• The state cost.

In New Mexico, cost is simply not an issue. Without raising any taxes, New Mexico will pull in enough new tax revenue to more than cover the state’s cost of the Medicaid expansion. In fact, in the first seven years, the revenue will be more than double what we need to pay the state’s share. In other words, New Mexico will make money from ObamaCare, and not have to worry about paying our share of the cost.

• Medicaid is unpopular.

The opposite is true. Polls show that people on Medicaid rate their satisfaction higher than those with employer-provided private insurance. Studies have shown that Medicaid lowers mortality rates and improves patient outcomes. 

• Medicaid is government-run health care.

Medicaid is simply a source of payment. In New Mexico, health care under Medicaid is provided by all the major private managed care organizations. The administrative costs of Medicaid are extremely low and well below that of private insurance.  If you already have health insurance, the government will have little say in the delivery of care and will not come between you and your doctor. ObamaCare does, however, mandate a minimum benefit package and require that insurance companies spend 80 percent or more of your premiums on health care. ObamaCare also says insurance companies can no longer (in 2014) deny coverage, revoke your coverage when you get sick or enact lifetime limits on coverage.

• Medicaid reimbursement rates. 

New Mexico’s Medicaid payments to providers are some of the highest in the nation.  The state has been proactive in recruiting providers and paying an adequate reimbursement.  With an additional 150,000 New Mexicans added to Medicaid, the number of providers accepting Medicaid is likely to increase, not decrease.

We don’t know why Governor Martinez is still pondering the Medicaid expansion and we honestly can’t think of a good reason for her to deny health care to 150,000 of our friends, family, and neighbors. To those New Mexicans who don’t have health insurance because their employers don’t provide it and they can’t afford it on their own, this decision is literally a matter of life and death. But all of us will anxiously await—with hope—our Governor’s Judgment Day. 

Bill Jordan is Policy Director for New Mexico Voices for Children

After much anticipation, the Supreme Court ruled to uphold the Affordable Care Act (ACA)—otherwise known as ObamaCare—by a 5-4 decision. While there is great confusion among the public about what the ACA will do to our nation’s health care delivery system, one easy way to understand the law is this: The ACA makes health insurance companies play fair.

No more denying you coverage because of pre-existing conditions; no more dropping your coverage when you get sick; no more billing you into bankruptcy; and no more annual or lifetime limits—just to mention a few of the many benefits.

As part of creating better overall value for consumers, the law requires insurance companies to use 80 percent of your premium to provide health care and quality improvements. Currently, an estimated 30 percent of every health care dollar goes toward non-health-related expenses, such as advertizing campaigns, bureaucracy, and paperwork. (In contrast, only about 3 percent of Medicare and Medicaid expenditures go to administering those two programs.) What’s more, insurance companies that don’t meet this requirement must provide their customers with a rebate or reduce their premiums.

The law also requires insurance companies to provide some preventive services—annual exams and cancer screenings such as mammograms and colonoscopies—with no co-pays.

Countless New Mexicans have already benefited from these new insurance company rules:

• Many hundreds of children with pre-existing conditions have been able to get insurance coverage.
• 26,000 young adults under age 26 have been able to stay on their parent’s policies.
• 285,000 seniors on Medicare have received free preventive services.

Of course, some of the biggest changes will come for those New Mexicans who do not have private health insurance:

• The ACA has already resulted in 1,059 New Mexicans—who were previously locked out of the insurance system because of a pre-existing condition—gaining coverage in the state’s high risk pool.
• More than 150,000 low-income adults will be newly eligible for Medicaid—the government health plan that currently covers low-income children, pregnant women, and nursing home patients—starting in 2014 if the state elects to expand the program. The expansion will be paid for almost entirely by federal dollars.
• More than 100,000 New Mexicans who earn too much to qualify for Medicaid will receive tax credits for helping cover the cost of a private insurance plan of their choosing.
• All New Mexicans needing to purchase private health insurance will be able to compare plans and premiums on the state’s health insurance exchange—an online marketplace that’s required by the ACA.
• Several experts have said that only a tiny percent of Americans who do not wish to purchase insurance will elect, instead, to pay a penalty (although the Supreme Court ruling declared that the penalty was constitutional if it was referred to as a ‘tax’). 

New Mexico has received some $35 million for planning and creating the health insurance exchange, although implementation has been slow. New Mexicans participating in the exchange will get federal benefits to purchase insurance amounting to more than $4 billion over the first seven years (2014-2020). If state leaders elect to expand the state’s Medicaid program, New Mexico stands to receive between 4.5 and 6.2 billion in federal funding over the seven-year period. The ACA, including the Medicaid expansion, will create between 30,000 and 38,000 new jobs, stimulate the economy, and level the playing field for New Mexico’s businesses by making it affordable for small businesses to offer their employees coverage. The taxes generated by the new jobs and economic activity will more than cover New Mexico’s share of the cost of the expansion. The ACA expansion will also take the burden of uncompensated care (care provided—usually in emergency rooms—to people who don’t have insurance)—an estimated annual cost of $335 million—off of the hospitals, providers, and those who already have insurance.

Kwaku Sraha is NM Voices’ Finance Manager

The entire country is anxiously awaiting the Supreme Court ruling on ObamaCare, officially known as the Affordable Care Act (ACA). The decision will come any day and will have major consequences no matter whether the law is upheld or struck down.

No state has more at stake than New Mexico. New Mexico has the third highest rate of uninsured in the nation and that not only gives us poor health outcomes, but it also serves as a major drag on our economy. Our small businesses cannot compete when their health insurance rates are higher than those in other states because of our high rate of uninsured. If the law is upheld, we have more to gain than any other state because most everyone will become insured. If the law is struck down, we have the most to lose. Either way, the decision will require action and the big question will be, “What will our leaders do?”

If the law is upheld, it should be a cause for celebration and a call to kick preparations into high gear. The Governor should immediately move forward with full and aggressive implementation of the ACA because the big infusion of federal money will create jobs, stimulate our economy, and improve the health of so many New Mexicans. Anything short of full implementation will be a huge loss for New Mexico’s families, businesses, and economic well-being. Will the Governor order her Office of Health Care Reform to comply with the law and act quickly to establish a Health Insurance Exchange before the October 2013 deadline? The Governor vetoed a Health Insurance Exchange bill in 2011 that was a bipartisan compromise, saying she would create the Exchange with an Executive Order. It’s not clear that the Executive has that authority, and if we wait for Exchange legislation to be passed again in March of 2013 it will be too late to meet the October 2013 deadline, which is when states must have their Exchanges in place.

Will the executive budget request for next year reflect an increase in Medicaid funding to enroll the eligible children who are likely to enter the health care system with their low-income parents? Enrollment of children in New MexiKids has actually decreased since February 2011. The state’s Human Services Department claims that there isn’t enough money to improve enrollment, and the last two executive budgets have not asked for money to make health care available to more children. Will that change if the ACA is upheld by the court?

If the law is struck down, what will our leaders do to reduce New Mexico’s high rate of uninsured? Is there a plan on hold to improve the health of our people and the health of our economy? Or will those who have insurance continue to pay higher premiums to cover the costs of emergency care for those who don’t have insurance?

The ACA was signed into law more than two years ago.  The Supreme Court will rule any day. When it does, one way or the other, it should serve as a call to action. Let’s hope New Mexico is finally ready to act. No more excuses, no more delays, no more waiting. Our children and families and businesses deserve nothing less.

Bill Jordan is NM Voices’ Policy Director.

Our work on children’s health care is funded by: the David and Lucile Packard Foundation, First Focus, Voices for America’s Children, the Robert Wood Johnson Foundation, and the Annie E. Casey Foundation.