Committee advances $19.7M request to rebase nursing‑facility Medicaid rates, sponsor says rebasing long overdue

The Senate Health and Public Affairs Committee recommended a do‑pass on Senate Bill 97, an appropriation to rebase Medicaid nursing‑facility rates.

Vicente Vargas of the New Mexico Health Care Association and other provider witnesses said the industry’s Medicaid rates have not been rebased since 2007; audited cost reports show facilities remain under‑reimbursed and many operate at a loss. Vargas said the requested state appropriation (about $19.7 million) would draw down federal matching funds and adjust rates to better reflect audited costs and staffing needs.

Committee members asked about bed counts and scale. Witnesses said roughly 68 nursing facilities and about 6,000 licensed nursing beds exist in the state (not all occupied at all times). Legislators also asked whether the requested funds are recurring; the sponsor clarified part of the appropriation is recurring and that the request is based on audited cost reports and administrative rate‑rebasing procedures conducted by the Health Care Authority.

After discussion the committee recommended the bill. Supporters said rebasing is intended to stabilize provider finances, support staffing and preserve long‑term care access; sponsors emphasized a matched federal component would expand the appropriation’s reach.