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|
SPONSOR: |
Lujan |
DATE
TYPED: |
|
HB |
759/aHTRC |
||
|
SHORT
TITLE: |
Tricare
Services Gross Receipts |
SB |
|
||||
|
|
ANALYST: |
Smith |
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REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY03 |
FY04 |
|
|
|
|
|
(350) |
|
Recurring |
General Fund |
|
|
(241) |
|
Recurring |
Local Funds |
(Parenthesis
( ) Indicate Revenue Decreases)
Duplicates
SB654
Responses
Received From
Taxation
and Revenue Department (TRD)
SUMMARY
Synopsis of HTRC Amendment
The
House Taxation and Revenue Committee amendments include a gross receipts
deduction for podiatrist’s services to Medicaid beneficiaries. The purpose of
this amendment is to eliminate a signing order problem.
Synopsis of Original Bill
House Bill 759 amends Section 7-9-77.1 NMSA 1978
to provide doctors and osteopathic physicians a gross receipts tax deduction
for receipts from third-party administrators of the Federal Military TRICARE
program. TRICARE is a managed care
health insurance program similar to various managed care private insurance
programs.
The section is further
amended to clarify that medical doctors licensed pursuant to Section 66-6-13
(Licensure by Endorsement) and osteopaths licensed pursuant to Section 66-10-12
(Licensure without Examination) qualify for the current Medicare
deduction.
The bill also makes a
minor change in terminology from “osteopaths” to “osteopathic physicians”.
FISCAL
IMPLICATIONS
TRD notes that roughly 3.9% of the state’s
population is covered by TRICARE.
TRICARE program administrators report paying $7.5 million in claims in
fiscal year 2000 for all professional services.
A 6% average rate of growth was used to approximate the base on which
the fiscal impact is estimated.
OTHER
SUBSTANTIVE ISSUES
TRD notes that in addition
to adding an element of stability to the gross receipts tax, receipts of the
health care industry grow more quickly than general revenue. Exempting this sector reduces the state’s
ability to generate adequate revenue from the gross receipts tax over
time.