SENATE BILL 255

56th legislature - STATE OF NEW MEXICO - first session, 2023

INTRODUCED BY

Gay G. Kernan and Siah Correa Hemphill

 

 

 

 

 

AN ACT

RELATING TO HEALTH CARE; REQUIRING THE HUMAN SERVICES DEPARTMENT TO CREATE A MILEAGE REIMBURSEMENT RATE FOR AMBULANCE, ENVIRONMENTAL MODIFICATION SERVICE AND DURABLE MEDICAL EQUIPMENT PROVIDERS THAT RENDER SERVICES TO MEDICAID PATIENTS; MAKING AN APPROPRIATION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Public Assistance Act is enacted to read:

     "[NEW MATERIAL] MEDICAID MILEAGE REIMBURSEMENT FOR AMBULANCE TRANSPORT, ENVIRONMENTAL MODIFICATION SERVICES AND DELIVERY OF DURABLE MEDICAL EQUIPMENT.--

          A. The department shall establish a mileage reimbursement rate for ambulance providers that render services to medicaid patients. Ambulance providers shall be reimbursed for every mile that they travel while transporting a patient. When calculating the mileage reimbursement rate, the department shall consider the average cost of:

                (1) licensure and registration of an ambulance;

                (2) fuel;

                (3) ambulance maintenance;

                (4) repair;

                (5) tires;

                (6) ambulance insurance;

                (7) mechanic wages, benefits and payroll taxes;

                (8) loan interest related to the ambulances;

                (9) the cost of the weighted allocation of overhead;

                (10) the cost of depreciation; and

                (11) reserves for replacement ambulance vehicles and equipment.

          B. The department shall establish a mileage reimbursement rate for providers that travel to the homes of medicaid patients to perform environmental modification services or to deliver and install durable medical equipment. When calculating the mileage reimbursement rate, the department shall consider the average cost of:

                (1) licensure and registration of a vehicle suited for providing environmental modification services or durable medical equipment;

                (2) fuel;

                (3) vehicle maintenance;

                (4) vehicle repair;

                (5) tires;

                (6) vehicle insurance;

                (7) mechanic wages, benefits and payroll taxes;

                (8) vehicle loan interest;

                (9) weighted allocation of overhead;

                (10) depreciation; and

                (11) reserves for replacement of vehicles and supplies needed to provide environmental modification services and durable medical equipment.

          C. Ambulance, environmental modification service and durable medical equipment providers shall not be reimbursed at a rate higher than the internal revenue service's official mileage reimbursement rate.

          D. For the purposes of this section:

                (1) "ambulance" means a vehicle designed and used or intended to be used for the transportation of sick or injured persons;

                (2) "durable medical equipment" means equipment that can withstand repeated use, is primarily and customarily used to serve a medical purpose, is not useful to individuals in the absence of an illness or injury and is appropriate for use at home; and

                (3) "environmental modification service" means the installation of equipment and the physical adaptations that are made at an individual's residence that are necessary to ensure the health, welfare and safety of the individual or enhance the individual's independence."

     SECTION 2. APPROPRIATION.--Two million dollars ($2,000,000) is appropriated from the general fund to the human services department for expenditure in fiscal year 2024 to cover the costs of reimbursing ambulance, environmental modification service and durable medical equipment providers for mileage. Any unexpended or unencumbered balance remaining at the end of fiscal year 2024 shall revert to the general fund.

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