The bill mandates the New Mexico Department of Health to create a total health care expenditure database by October 1, 2025. This new section of the Health Information System Act requires the department to issue a request for proposals to contract with one or more entities for the development of this database. The database will gather comprehensive information on health care claim payments across various payer categories, nonclaim payments such as prescription drug spending and health insurance premiums, as well as nonmedical factors that contribute to health care costs, including transportation expenses for rural health care providers.

Additionally, the bill includes an appropriation of $500,000 from the general fund for the fiscal years 2026 and 2027 to support the development of the database. Any funds that remain unspent or unencumbered at the end of fiscal year 2027 will revert back to the general fund. This initiative aims to enhance the state's health information system and provide valuable insights into health care expenditures.