HOUSE BILL 779
47th legislature - STATE OF NEW MEXICO - second session, 2006
INTRODUCED BY
John A. Heaton
AN ACT
RELATING TO PUBLIC ASSISTANCE; PROVIDING FOR MEDICAID REIMBURSEMENT RATES FOR CERTAIN ENTITIES; 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 REIMBURSEMENT FOR NURSING FACILITIES AND INTERMEDIATE CARE FACILITIES FOR THE MENTALLY RETARDED.--On July 1, 2006 and on July 1 of each subsequent year, the department shall adjust for inflation medicaid rates paid to nursing facilities. On September 1, 2006 and on September 1 of each subsequent year, the department shall adjust for inflation medicaid rates paid to intermediate care facilities for the mentally retarded. The new provider rates each year shall equal the previous year's rate plus the current market basket index inflation adjustment as determined by the federal centers for medicare and medicaid services. In years when the reimbursement rate is re-based, the market basket index shall be used to index each provider's operating costs to a common point of December 31 for the base year and then indexed to a midpoint of the rate year to adjust for inflation."
Section 2. APPROPRIATION.--
A. Three million two hundred thousand dollars ($3,200,000) is appropriated from the general fund to the human services department for expenditure in fiscal year 2007 as follows:
(1) two million two hundred thousand dollars ($2,200,000) to increase the medicaid reimbursement rate for licensed nursing facilities and licensed intermediate care facilities for the mentally retarded; and
(2) one million dollars ($1,000,000) to restore funding lost due to reductions in the medicaid reimbursement rate made in fiscal years 2005 and 2006 to licensed nursing homes and licensed intermediate care facilities for the mentally retarded.
B. Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert to the general fund.