The House Health and Human Services Committee convened on March 12, 2025, to discuss significant legislative proposals, including Senate Bill 88, which aims to establish a Medicaid trust fund. The meeting began with a roll call confirming a quorum, allowing discussions to proceed.

Senate Bill 88, presented by the committee's vice chair, proposes the creation of a trust fund that will be funded through overnight deposits made to the state treasury. The plan involves allocating approximately $300 million annually from these deposits until the fund reaches a total of $2 billion. Once this threshold is met, the fund will begin to disburse 5% of its total, which will be matched with federal funds to support Medicaid services.

The bill's proponents emphasized that while the trust fund will alter the source of Medicaid funding, it will not replace the general fund contributions currently supporting Medicaid. This initiative is designed to enhance the financial stability of Medicaid in New Mexico by diversifying its funding sources.

The committee opened the floor for questions following the presentation, indicating a willingness to engage in further discussion about the implications of the proposed trust fund. The establishment of this fund could significantly impact the state's approach to healthcare financing, making it a critical topic for ongoing legislative consideration.