New Mexico aims for new regulatory structure for the insurance industry
The New Mexico government is preparing to enroll tens of thousands of residents into new health insurance plans and this has spurred state lawmakers to make changes to regulations that oversee the insurance market. Earlier this month, New Mexico voters approved a change to the state’s constitution. According to the change, insurance companies will no longer be regulated by the Public Regulation Commission. Next July, these companies will fall under the regulatory authority of the Office of the Superintendent of Insurance.
Voter approved changes market greatest regulatory overhaul in 16 years
The changes account for the most significant regulatory overhaul the state has seen since 1996. Lawmakers are currently working on developing a new regulatory structure for the health insurance industry and market of New Mexico. This comes as the state is grappling with the Affordable Care Act and determining what to do in terms of complying with the federal health care law. The state currently has plans to build and operate its own health insurance exchange, which is also in need of a regulatory structure that will allow it to operate effectively.
New Mexico Legislature must find common group with Governor to avoid problems
New Mexico lawmakers have a major task ahead of them and if the Legislature cannot find common ground with Governor Susana Martinez, there may be some problems for the state’s health insurance market. Regulations are needed to ensure that both consumers and insurance companies are not taken advantage of by each other. Think New Mexico, a group that helped pass the measure for a new regulatory structure for New Mexico, aims to help develop a structure that will be a benefit for the entire market, rather than a burden on insurance companies and consumers.
State aims to align regulations with Affordable Care Act
Currently, the main goal of the Legislature is to ensure that new insurance regulations do not clash with those being established by the Affordable Care Act. The state must comply with the federal law’s provisions by 2014. Think New Mexico expects that the state will be under a high level of pressure between the years 2014 and 2017 as the insurance market adapts to the changes that have been made.