Clearly New Mexico

The cost of health coverage continues to devastate the average American family. In fact, health care costs are the leading cause of personal bankruptcy in our country.

Seniors are perhaps most vulnerable to this alarming trend.

When the New Mexico State Legislature convenes on August 15, I certainly hope cost doesn't get sacrificed at the altar of coverage.

Covering all New Mexicans is absolutely critical. But, there must be measures taken to ensure that by doing so, we don't turn it into a boondoggle for the already thriving insurance industry.

A good start would be to require more meaningful transparency at the point of purchasing a policy. One bill introduced during the 2007 legislative session provided such transparency. Broker fees, the amount of money that gets spent on actual health care (called "Medical Loss Ratio" in official parlance) and the rate of premium cost increases over the previous five years were all included in the bill.

The bill was defeated quickly on the Senate floor.

But, this kind of transparency will be necessary if we mandate coverage on hundreds of thousands of New Mexicans.

Just look at what Massachusetts is going through. They extended coverage to all residents last year. But, they failed to address the sky rocketing cost of private insurance. They are now forced to retrofit the system with measures (like greater transparency) to control costs. Not an easy prospect, given the insurance lobby.

Let's learn from Massachusetts and not make the same mistake here.