SENATE BILL 423

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Mary Kay Papen

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.--On July 1, 2008, the department shall adjust by three and one-half 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."

     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.--One million seven hundred fifty thousand dollars ($1,750,000) is appropriated from the general fund to the human services department for expenditure in fiscal year 2009 and subsequent fiscal years to include an inflation adjustment of three and one-half percent as part of re-basing the medicaid reimbursement rates to licensed nursing facilities. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

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

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