This bill amends existing taxation laws in New Mexico by removing the sunset date for a gross receipts tax deduction related to copayments or deductibles paid by insured individuals to health care practitioners. It also introduces new deductions for receipts from the sale of medical equipment, supplies, and drugs, as well as for health care services provided by practitioners that are not contracted with managed care organizations or health care insurers. Additionally, it mandates that health care providers receiving Medicaid reimbursement be compensated for all applicable gross receipts taxes they are required to pay.

The bill includes specific legal language changes, such as the deletion of the sunset provision and the insertion of new definitions and requirements for deductions. It establishes a new section that outlines the deductions for health care services and sales of medical items, while also ensuring that these deductions are reported separately for evaluation purposes. Furthermore, it requires managed care organizations to specify applicable gross receipts taxes in their reimbursement rates for Medicaid services. The provisions of this act are set to take effect on July 1, 2025.

Statutes affected:
introduced version: 7-9-93
HC substitute: 7-9-93