By Kelsey McCowan Heilman, Staff Attorney, New Mexico Center on Law and Poverty

In an earlier blog post, I explained that extending Medicaid coverage to more low-income individuals and families as envisioned in the Affordable Care Act would boost New Mexico’s state coffers by about $500 million dollars.  But it would do more than that.

At the New Mexico Center on Law and Poverty, we just released a brief, The Medicaid Opportunity in New Mexico, detailing some of those benefits. Medicaid literally saves lives. A recent Harvard analysis estimated that 376 New Mexicans die each year because they are uninsured. Extended coverage to 170,000 more uninsured people would prevent unnecessary deaths. People who don’t have healthcare coverage often cannot access care, and when they finally do, they suffer from more serious conditions and diseases than people with coverage because of delayed or inconsistent treatment. Healthcare coverage would also bring financial stability to families struggling to make ends meet in this economy. Medicaid beneficiaries are 40 percent less likely to skip paying bills or borrow money in order to pay medical expenses. With Medicaid, the recently jobless and those struggling to find work would be better able to pay for food, housing, utilities and other necessities.

Some states are asking the federal government for permission to adopt a partial Medicaid Expansion – for example, by extending coverage to adults with incomes up to 100% of the poverty level rather than 138% of the poverty level as required by the healthcare reform law. Our report reveals this would be a mistake for New Mexico because it would leave so many low-income families without coverage. While the federal law would give families with incomes between 100% and 138% of the poverty level financial assistance to buy private insurance, in practical terms, that coverage would remain out of reach. A family of four at 115% of the poverty level makes $26,500 a year, but needs $42,200 a year to cover basic expenses in Albuquerque. Even taking into account available public assistance like SNAP (food stamps), they are already $675 short each month. Without Medicaid, they will be unable to buy health insurance even with financial help. As a result, tens of thousands of people in New Mexico would be forced to forego preventive care, delay necessary treatment, and accumulate medical debt when they get sick.

There are more benefits to New Mexico outlined in the report. For example, saying yes to the Medicaid Opportunity would create thousands of new jobs in the healthcare sector, helping us to address our persistent provider shortage. The federal dollars that flow into the state would also benefit local businesses, which would see demand for their goods and services increase as healthcare providers work with local vendors and new paychecks are spent in the community.

This is our chance to create a healthier New Mexico by bringing healthcare coverage to 170,000 of our lowest-income family members, friends and neighbors. New Mexico families would be able to access the healthcare and financial stability that we all need – and at a net savings to the state.

A recent poll by the state’s largest newspaper found that a majority of New Mexico voters support the Medicaid Opportunity. Numerous policymakers, community leaders, healthcare providers, and advocates have also stepped forward to support the Medicaid Opportunity, recognizing it as the right thing to do. It is time for New Mexico to take this opportunity to secure a more prosperous future for all New Mexicans.