April 8, 1999

The Honorable Raymond G. Sanchez and

Members of the House of Representatives

Executive-Legislative Building

Santa Fe, New Mexico 87503

Honorable Speaker and Members of the House:

I have this day VETOED and am returning HOUSE BILL 521

enacted by the Forty-Fourth Legislature, First Session, 1999.

This legislation would exclude Native Americans from Medicaid Managed Care. I am vetoing it due to its unbudgeted cost of up to $2 million dollars from the general fund, and due to my belief that the transitional issues related to Medicaid managed care have not yet had sufficient time to be resolved.

I am sensitive to the need to resolve outstanding transitional issues related to Salud!. Therefore, I will instruct the Human Services Department to set up a process to regularly meet with the tribes, Indian Health Services and the Salud! managed care organizations to reach resolution on open issues such as contracting and client education.

In addition, I will instruct the Human Services Department to ensure that the managed care organizations fulfill every aspect of their contracts with the state, including appropriate outreach to tribal members, the provision of culturally-competent care, making available interpreters to Native Americans Salud! members, and prompt payment to providers of all properly submitted claims.

Furthermore, I will instruct my Cabinet Secretaries to work to develop a solid tribal consultation process that honors the government-to-government agreement I signed with tribal leaders in 1996. I am confident this process will be fruitful.

Sincerely,

Gary E. Johnson

Governor