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F I S C A L I M P A C T R E P O R T
SPONSOR Martinez, R
ORIGINAL DATE
LAST UPDATED
02/05/08
HB
SHORT TITLE County Inmate Health Provider Reimbursement
SM 48
ANALYST Hanika-Ortiz
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)
FY08
FY09
FY10 3 Year
Total Cost
Recurring
or Non-Rec
Fund
Affected
Total
$0.1 (see
narrative)
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico Corrections Department (NMCD)
Health Policy Commission (HPC)
Department of Health (DOH)
Department of Finance & Administration (DFA)
SUMMARY
Synopsis of Bill
Senate Memorial 48 requests HPC to convene a task force to study health care provider
reimbursement for health care delivered to individuals in the custody of county detention
facilities.
The Memorial provides for the following:
•
County detention facilities provide health care, including mental health care, to
individuals in the custody of county detention facilities.
•
County detention facilities experience serious difficulties in obtaining fair rates from
health care providers.
•
The problem of obtaining fair health care provider rates is exacerbated by the fact that
individuals in custody automatically lose Medicaid eligibility upon entry into the county
detention system.
•
The inability of county detention facilities to secure affordable health care provider rates
limits the ability of county governments to be appropriately accountable to local
taxpayers for these costs.
pg_0002
Senate Memorial 48 – Page
2
•
The New Mexico association of counties seeks to implement policy that would require
health care providers that receive any state taxpayer money to charge county detention
facilities at the same reimbursement rates they charge for Medicaid or any other state
program in which the providers participate.
The Memorial further provides that the task force present recommendations to the legislative
health and human services committee by November 1, 2008.
FISCAL IMPLICATIONS
Agencies will be required to provide staff to participate on the task force.
The New Mexico Association of Counties seeks to implement policy requiring health care
providers receiving state taxpayer money to charge county detention facilities at the same
reimbursement rates they charge for Medicaid or any other state program in which the providers
participate.
SIGNIFICANT ISSUES
The New Mexico association of counties considers this to be a priority issue.
The task force is charged with developing recommendations for health care provider
reimbursement for health care delivered to individuals in county detention facility custody. HPC
notes that county detention facilities experience serious difficulties in obtaining fair rates from
health care providers. This problem is exacerbated by the fact that individuals in custody
automatically lose Medicaid eligibility upon entry into the county detention system.
PERFORMANCE IMPLICATIONS
DOH reports that county governments have a responsibility for providing health care to the
inmates of their correctional facilities. Recent court cases, including a key one in Santa Fe, have
highlighted the failure of some county governments to meet this responsibility. A Santa Fe New
Mexican article, dated August
27, 2007, quoted a study report which indicated that conditions at
the Santa Fe County jail hadn't improved enough to meet U.S. Department of Justice standards.
Medical care at the jail had "deteriorated significantly" since August 2006, access to mental-
health care had improved but remained sub par and short staffing is a persistent problem. This is
indicative of the situation at several other county facilities.
ADMINISTRATIVE IMPLICATIONS
The New Mexico health policy commission will be required to convene a task force consisting of
representatives from the New Mexico association of counties, the department of health, the
human services department, health care providers who provide care to county detention facility
inmates, the corrections department, the New Mexico medical society and the New Mexico
primary care association.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
pg_0003
Senate Memorial 48 – Page
3
SM48 relates to SB272 and SB385
SB272 sets health care provider reimbursement rates for health care, including mental health
care, delivered to persons in the custody of a county jail. The bill requires a Medicaid provider to
charge at the same rate that the provider charges the Human Services Department for Medicaid
recipients. The bill further requires a non-Medicaid provider who accepts reimbursement from
the state for a patient’s care to charge the county at the highest rate that the state reimburses the
provider for the same care pursuant to another program.
SB385 also sets health care provider reimbursement rates for health care, including mental health
care, delivered to persons in the custody of a county jail. However, the bill provides that a county
shall reimburse a Medicaid and non-Medicaid provider at the lowest rate for county jail health
care services.
TECHNICAL ISSUES
The memorial does not request representation from the Children, Youth and Families
Department which is involved with juvenile detention through the Juvenile Justice Services
Division; or, the Statewide Entity for behavioral health, which could help address issues on
behavioral health provider rates and requirements.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
DFA notes that counties will continue to pay high health care rates for the care delivered to
persons in the custody of a county jail facility.
AHO/bb