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SPONSOR: |
Altamirano |
DATE
TYPED: |
|
HB |
|
||
SHORT
TITLE: |
Tricare
Services Gross Receipts |
SB |
654 |
||||
|
ANALYST: |
Smith |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
(295.0) |
(320.0) |
Recurring |
General Fund |
|
(195.0) |
(215.0) |
Recurring |
Local Funds |
|
|
|
|
|
(Parenthesis
( ) Indicate Revenue Decreases)
Duplicates
HB759
Responses
Received From
TRD
SUMMARY
Synopsis of Bill
Senate Bill 654 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.