HOUSE BILL 375

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

Edward C. Sandoval

AN ACT

RELATING TO TAXATION; EXPANDING THE TYPES OF RECEIPTS THAT MAY BE DEDUCTED FOR SERVICES PROVIDED BY A HEALTH CARE PRACTITIONER.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 7-9-93 NMSA 1978 (being Laws 2004, Chapter 116, Section 6, as amended) is amended to read:

     "7-9-93. DEDUCTION--GROSS RECEIPTS--CERTAIN RECEIPTS FOR SERVICES PROVIDED BY HEALTH CARE PRACTITIONER.--

          A. Receipts that are otherwise deducible pursuant to another section of the Gross Receipts and Compensating Tax Act shall not be deducted from gross receipts pursuant to this section. Receipts from fee-for-service payments by a health care insurer shall not be deducted from gross receipts pursuant to this section.

          [A.] B. Receipts from payments by a managed health care provider or health care insurer for commercial contract services or medicare part C services provided by a health care practitioner [that are not otherwise deductible pursuant to another provision of the Gross Receipts and Compensating Tax Act] may be deducted from gross receipts; provided that the services are within the scope of practice of the person providing the service. [Receipts from fee-for-service payments by a health care insurer may not be deducted from gross receipts. The deduction provided by this section shall be separately stated by the taxpayer.]

          C. Receipts from payments of copayments or deductibles by an insured or enrollee in a managed care health plan for health care services provided by a health care practitioner may be deducted from gross receipts; provided that the services are within the scope of practice of the person providing the service.

          D. The purpose of the deductions provided in this section is to encourage health care practitioners to locate and remain in New Mexico and to reduce the tax burden paid by health care practitioners.

          E. The department shall annually report to the revenue stabilization and tax policy committee the aggregate amount of deductions taken pursuant to this section, the number of taxpayers claiming each of the deductions and any other information that is necessary to determine that the deductions are performing the purposes for which they are enacted.

          F. A taxpayer deducting gross receipts pursuant to this section shall report the amount deducted separately for each deduction provided in this section and attribute the amount of the deduction to the appropriate authorization provided in this section in a manner required by the department that facilitates the evaluation by the legislature of the benefit to the state of these deductions.

          [B.] G. For the purposes of this section:

                (1) "commercial contract services" means health care services performed by a health care practitioner at negotiated fee rates pursuant to a contract with a managed health care provider or health care insurer other than those health care services provided for medicare patients pursuant to Title 18 of the federal Social Security Act or for medicaid patients pursuant to Title 19 or Title 21 of the federal Social Security Act;

                (2) "copayment" means the per visit amount required to be paid by an insured or enrollee to a health care practitioner for health care services pursuant to the terms of the insured or enrollee's managed care health plan;

                (3) "deductible" means the amount of covered charges an insured or enrollee is required to pay in a plan year before the insured or enrollee's managed care health plan begins to pay for applicable covered charges;

                (4) "fee-for-service" means payment for health care services by a health care insurer for covered charges under an indemnity insurance plan;

                [(2)] (5) "health care insurer" means a person that [(a)] has a valid certificate of authority in good standing pursuant to the New Mexico Insurance Code to act as an insurer, health maintenance organization or nonprofit health care plan or prepaid dental plan; [and

                     (b) contracts to reimburse licensed health care practitioners for providing basic health services to enrollees at negotiated fee rates;

                (3)] (6) "health care practitioner" means:

                     (a) a chiropractic physician licensed pursuant to the provisions of the Chiropractic Physician Practice Act;

                     (b) a dentist or dental hygienist licensed pursuant to the Dental Health Care Act;

                     (c) a doctor of oriental medicine licensed pursuant to the provisions of the Acupuncture and Oriental Medicine Practice Act;

                     (d) an optometrist licensed pursuant to the provisions of the Optometry Act;

                     (e) an osteopathic physician licensed pursuant to the provisions of Chapter 61, Article 10 NMSA 1978 or an osteopathic physician's assistant licensed pursuant to the provisions of the Osteopathic Physicians' Assistants Act;

                     (f) a physical therapist licensed pursuant to the provisions of the Physical Therapy Act;

                     (g) a physician or physician assistant licensed pursuant to the provisions of Chapter 61, Article 6 NMSA 1978;

                     (h) a podiatrist licensed pursuant to the provisions of the Podiatry Act;

                     (i) a psychologist licensed pursuant to the provisions of the Professional Psychologist Act;

                     (j) a registered lay midwife registered by the department of health;

                     (k) a registered nurse or licensed practical nurse licensed pursuant to the provisions of the Nursing Practice Act;

                     (l) a registered occupational therapist licensed pursuant to the provisions of the Occupational Therapy Act;

                     (m) a respiratory care practitioner licensed pursuant to the provisions of the Respiratory Care Act; 

                     (n) a speech-language pathologist or audiologist licensed pursuant to the Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act;

                     (o) a professional clinical mental health counselor, marriage and family therapist or professional art therapist licensed pursuant to the provisions of the Counseling and Therapy Practice Act who has obtained a master's degree or a doctorate;

                     (p) an independent social worker licensed pursuant to the provisions of the Social Work Practice Act; and

                     (q) a clinical laboratory that is accredited pursuant to 42 U.S.C. Section 263a but that is not a laboratory in a physician's office or in a hospital defined pursuant to 42 U.S.C. Section 1395x;

                (7) "managed care health plan" means a health care plan provided by a managed health care provider;

                [(4)] (8) "managed health care provider" means a person that provides for the delivery of comprehensive basic health care services and medically necessary services to individuals enrolled in a plan through its own employed health care providers or by contracting with selected or participating health care providers. "Managed health care provider" includes only those persons that provide comprehensive basic health care services to enrollees on a contract basis, including the following:

                     (a) health maintenance organizations;

                     (b) preferred provider organizations;

                     (c) individual practice associations;

                     (d) competitive medical plans;

                     (e) exclusive provider organizations;

                     (f) integrated delivery systems;

                     (g) independent physician-provider organizations;

                     (h) physician hospital-provider organizations; and

                     (i) managed care services organizations; and 

                [(5)] (9) "medicare part C services" means services performed pursuant to a contract with a managed health care provider for medicare patients pursuant to Title 18 of the federal Social Security Act."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

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