SENATE BILL 644

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Ben D. Altamirano

AN ACT

RELATING TO PUBLIC ASSISTANCE; PROVIDING FOR MEDICAID REIMBURSEMENT RATES TO CERTAIN ENTITIES; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

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, 2007, the department shall adjust by four percent for inflation and cost indexing, as part of re-basing the medicaid reimbursement rates, the medicaid rates paid to nursing facilities as specified by medicaid regulations. On September 1, 2007, the department shall adjust by four percent for inflation the medicaid rates paid to intermediate care facilities for the mentally retarded."

     Section 2. A new section of the Public Assistance Act is enacted to read:

     "[NEW MATERIAL] ANNUAL RATE ADJUSTMENT.--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 3. APPROPRIATION.--

          A. Two million four hundred twelve thousand four hundred dollars ($2,412,400) is appropriated from the general fund to the human services department for expenditure in fiscal year 2008 and subsequent fiscal years as follows:

                (1) effective July 1, 2007, two million one hundred four thousand four hundred dollars ($2,104,400), to include an inflation adjustment of four percent as part of re-basing the medicaid reimbursement rates, to licensed nursing facilities; and 

                (2) effective September 1, 2007, three hundred eight thousand dollars ($308,000), to include an inflation adjustment of four percent, to licensed intermediate care facilities for the mentally retarded.

          B. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert.

     Section 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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