State Health Care Reform Director Quits [Albuquerque Journal, N.M.]

March 24--SANTA FE -- The head of the state Office of Health Care Reform resigned abruptly this week after Gov. Susana Martinez's administration put the brakes on applying for more federal funding to create a state health insurance exchange.

Dr. Dan Derksen, who had been on the job about eight months, said it appeared the administration had "a shift in policy" with its decision not to proceed with applying for a second round of funding.

"It looks like I've taken it as far as I'm going to be able to take it," Derksen told the Journal on Friday.

Human Services Department spokesman Matt Kennicott said the administration remains committed to a state health insurance exchange but will move "in a very deliberative and thoughtful manner."

The administration has placed on hold the contracts that were to be awarded with $34 million in federal funds that Derksen's office had obtained in November for planning an exchange. The bulk of that was to be used for information technology.

The exchange would be a marketplace for individuals and small businesses to shop for, and buy, the health coverage mandated under the federal Affordable Care Act. If states don't create exchanges, the federal government will do so for them.

Exchanges are supposed to begin enrollments in October 2013 and be fully operational at the beginning of 2014.

The U.S. Supreme Court hears arguments next week on the constitutionality of the federal law.

"The prudent course would be to move forward and not wait, because of the timelines," said Derksen, a fam- ily physician who will resume teaching at the University of New Mexico School of Medicine and seeing patients. He resigned Monday.

Kennicott said the Supreme Court fight "is certainly a part of the larger Obamacare picture," but that the administration is also concerned about federal rules governing exchanges, some of which are still provisional.

"We will likely be applying for the Level 2 grant funding, but want to make sure that we are moving in the right direction in light of this," Kennicott said.

Health administrators and advocates working on the exchange said they were troubled by Derksen's departure.

"It's disappointing, because all of us are worried about the time frame. It's a lot of work to do," said Debbie Armstrong, executive director of the New Mexico Medical Insurance Pool, which is helping to plan the exchange.

"Losing your leader in midstream is just going to slow things down," said health consultant Ellen Pinnes, cochair of the health care reform office's stakeholder advisory group.

"It just leaves those of us in the advocacy community very concerned. We hope it doesn't indicate a change of direction in the Martinez administration," said Barbara Webber , executive director of Health Action New Mexico.

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