Analysis: Medicaid Expansion Will Break New Mexico Budget

According to a recent analysis from Key Policy Data, Medicaid is already in the process of putting New Mexico’s budget behind the proverbial “eight ball.” The Albuquerque Journal’s editorial board has also caught on to the problem per their recent editorial. As the Key Policy data report notes:

  • When New Mexico adopted Medicaid Expansion the enrollment forecast was at 147,000;
  • In 2015 that number was 46 percent higher, with 215,000 people having signed up for Medicaid Expansion.

In the last two years alone (before the state had to pick up one cent of ObamaCare expansion), Medicaid grew 10.4% and 11.1% annually.

The report concludes with these not-so-encouraging words:

With long-term weakness in revenue growth, the last thing a state should do is take on responsibility for new spending programs. New Mexico has already rolled the dice with Medicaid Expansion; what matters there is to rein in the costs as best possible. Other states, still not having accepted the program, should cautiously watch – and learn from their mistake.

As Medicaid consumes more and more of New Mexico’s budget, other priorities including education (the largest single component) is going to be on the chopping block. This could all be justified if Medicaid had a positive impact on health. Unfortunately, the results of the “gold-standard” study on the issue are hardly convincing.


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4 Replies to “Analysis: Medicaid Expansion Will Break New Mexico Budget”

  1. It’s my understanding that the decision to expand medicaid eligibility was that primarily of Governor Martinez – one of the few Republican governors in the country to opt for the expansion. So this fiasco can’t be blamed on the Dems.

    Alas, our “death spiral” appears to be accelerating.

    1. That is correct. Martinez did choose to do this and we told her it was a mistake at the time (I spoke with her personally). I believe that she felt she didn’t have an option politically. The Democrats universally support Medicaid expansion and are unlikely to accept even small reductions in its generosity without a fight.

      1. This is the sort of thing that has brought about the Trump phenomenon. Republicans must stand up and fight no matter what!

  2. Oh boy, now I can take the Rail Runner to see my doctor in Santa Fe! Wheeee.

    If you go to Europe, where they all have social everything, they also have mini everything, housing, cars, take home pay. Why do they all want to come to the USA?

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