Committee advances bill to require clearer Medicaid billing and separate gross‑receipts tax documentation for providers

The Senate Finance Committee on Tuesday unanimously advanced a committee substitute for Senate Bill 249 that would require Medicaid managed care organizations to provide documentation separating the payment amount for a service from any gross‑receipts tax (GRT) amounts so providers can confirm they are being reimbursed for taxes they must remit.

Sponsors and witnesses said New Mexico is one of the few states that subjects medical services to gross‑receipts tax and that providers sometimes cannot readily confirm whether the GRT portion is being passed through in full. The substitute requires documentation to “differentiate the reimbursement amount versus the tax amount” and aligns the effective date to January 1, 2026, to match tax reporting cycles.

Supporters, including the New Mexico Medical Society, said the change improves transparency, helps providers confirm they are being paid for required taxes and supports provider recruitment and retention in a competitive market. Blue Cross Blue Shield of New Mexico testified with concerns about federal rules governing health‑care related taxes and asked the committee to ensure the change would not imperil federal financial participation; committee staff and the sponsor said the bill does not create a new stand‑alone provider tax and that the state’s existing practice of factoring GRT into capitation and fee schedules is longstanding.

The committee advanced the substitute by roll call (11–0). Members said they expect technical conversations between carriers, the Medical Society and HCA before floor action to ensure implementation is clear and does not affect federal match or capitation calculations.