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Tuesday, May 13, 2025

Major Underpinning Of New Mexico Welfare State Back In Spotlight As Congressional Cuts Eye Massive Medicaid Program; State Has Protections In Place; Better Jobs And Higher Wages Needed To Reduce Rolls  

A major underpinning of New Mexico's modern welfare state is back in the spotlight with the Republican controlled congress eyeing cuts to the Medicaid program that now provides insurance for 830,000 residents in our state or 40 percent of the entire population of 2.1 million. 

That's the highest per capita rate in the USA. State spending on Medicaid is about $2.2 billion with the Feds kicking in another $11 billion.

With an entrenched low wage economy as well as stubborn generational poverty, the number of those eligible for Medicaid has remained very sticky.

And New Mexico takes very seriously its commitment to the program. 

This past legislative session lawmakers approved a blunt instrument to make up for any federal Medicaid cuts that win approval. A Medicaid Trust Fund, financed from revenues from the oil boom, was established and will eventually reach $2 billion with the first $280 million to start flowing in this year.

But what of the bigger picture of reducing the Medicaid rolls by having a better economy with higher paying jobs? Eligibility for Medicaid kicks in when an individual makes less than $20,000 a year and $41,000 for a family of four. That is a somewhat shocking reveal of just how many households here dangle by a thread financially.

One of the proposals in the congressional bill would . . .

.. .Require Medicaid recipients to work, volunteer or attend school for 80 hours a month. The requirement would apply to most able-bodied adults through age 64 without dependents and includes exceptions for pregnant women, people with substance-use disorders and others.

That may sound draconian to some but there may be an opportunity there. Could that volunteer time be coordinated with private sector employers through the Workforce Solutions Department to give the "volunteers" more exposure to the job market?

And that 80 hours a month to attend school. Could that lean into providing more training for skilled trades?

In a weekend appearance on Face the Nation, MLG engaged in some hyperbole regarding the impact of the proposed cuts here. (Video.) She did say, however, that the expensive program could stand for more "efficiencies." Does she have a plan to pursue them? If so, add them to the mix to protect a program vital to the state's health and well-being.  

New Mexico's fortunate financial position gives the state breathing room if Medicaid is trimmed. It also gives the state time to think longer term about creating opportunities and a better economy that would lessen dependence on Medicaid and the whims of DC.  

SPECIAL REPORT 

We asked KOB-TV Assignment Editor Mike Anderson for more info on that special report the station did on the APD DWI bribery scandal. The broadcast broke new ground. The full story is here including an interactive board. There are three nine minute video portions to the report and they are here

This is the Home of New Mexico Politics.      

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