ALBUQUERQUE — New Mexico’s Human Services Department proposed cuts to Medicaid would hurt families and violate federal law, said the New Mexico Center on Law and Poverty in comments submitted Monday on the department’s Centennial Care 2.0 waiver proposal.
“Everyone needs access to healthcare coverage,” said William Townley, an attorney with the New Mexico Center on Law and Poverty. “But HSD’s proposed cuts to Medicaid would force many New Mexican families to go into debt or simply drop coverage. That’s bad news for all of us. We know that when people go without healthcare, it’s much harder for them to maintain their financial stability, be productive in the workforce, or continue their education.”
HSD’s proposal imposes new patient premiums on low-income adults living just above the poverty line. Research has shown that these fees will cause thousands of New Mexicans to lose healthcare coverage. For many low-income families, the proposed increase to $10 a month is prohibitive and would force them to choose between healthcare and other necessities like food, housing, and transportation.
Hospital bills are especially devastating for families on limited income, often ranging from $10,000 to over $100,000. Yet, HSD’s proposed cuts would also phase-out retroactive coverage, which pays for a Medicaid eligible person’s hospital and medical bills incurred up to three months before signing up for Medicaid. Phasing out retroactive coverage would put New Mexico’s families in jeopardy of severe medical debt and force healthcare providers to shoulder increased uncompensated care costs.
New Mexicans have voiced overwhelming opposition to HSD’s proposed cuts to Medicaid. Throughout the entire Centennial Care 2.0 waiver application process, patients, providers, stakeholders, researchers, advocates and community members were nearly unanimously opposed to these changes.
HSD’s proposed Medicaid cuts also violate federal law. The Centers for Medicare and Medicaid Services (CMS) can only approve waivers of federal Medicaid requirements that are listed under Section 1115 of the Medicaid Act. Provisions that govern cost-sharing, such as premiums, and retroactive coverage are outside of Section 1115, meaning CMS lacks legal authority to waive such requirements. CMS has not yet approved the regulatory changes proposed in HSD’s new regulations.