New Mexico committee considers healthcare tax elimination to attract providers

February 26, 2025 | House of Representatives, Legislative, New Mexico


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New Mexico committee considers healthcare tax elimination to attract providers
During a recent meeting of the New Mexico Legislature's House Health and Human Services Committee, discussions centered on the potential extension or elimination of a tax on health care services, a topic that holds significant implications for the state's health care landscape. New Mexico is one of the few states that currently imposes such a tax, which has raised concerns among health care providers and advocates.

One of the key proponents of the tax change, who spoke during the meeting, emphasized that removing or extending the sunset on this tax could serve as a strategic tool to attract health care professionals to New Mexico. The speaker highlighted the state's need for more health care providers, suggesting that easing the tax burden could incentivize practitioners to relocate to the state.

The meeting also featured testimony from Tom Skripcima, the executive director of the New Mexico Dental Association. He pointed out that dental care is primarily funded through out-of-pocket payments and insurance that does not fall under managed care. Skripcima noted that the proposed legislation includes provisions to eliminate grocery taxes on dental supplies and equipment, which he argued would help alleviate the financial pressures on dental practitioners. He expressed concern over the alarming rate at which New Mexico is losing dentists, a trend he has observed over his 43 years of practice.

The discussions highlighted the broader implications of health care taxation in New Mexico, particularly in terms of accessibility and the retention of health care professionals. As the committee continues to deliberate on these issues, the outcomes could significantly impact the state's ability to provide adequate health care services to its residents.

In conclusion, the meeting underscored the urgent need for policy changes that could enhance the attractiveness of New Mexico as a destination for health care providers. As the committee moves forward, stakeholders will be closely watching how these discussions evolve and what decisions will ultimately be made regarding health care taxation in the state.

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