This bill amends the existing gross receipts tax deduction for health care practitioners in New Mexico to include additional payments made by patients. Specifically, it allows for the deduction of receipts from coinsurance, a copayment, or a deductible paid by an insured or enrollee to health care practitioners for commercial contract services, provided these services fall within the practitioner's scope of practice. This change is set to take effect on July 1, 2025, and is intended to enhance the financial relief available to health care providers by broadening the types of patient payments that can be deducted from gross receipts. Additionally, the bill clarifies the definition of "association of health care practitioners" by excluding certain entities such as organizations granted exemption from the federal income tax and hospitals, hospices, nursing homes, or outpatient facilities licensed by the health care authority. The bill also revises the definition of "copayment" to specify that it is an amount required by a health care insurer or managed care health plan that an insured or enrollee must pay when receiving medical services. These amendments aim to streamline the tax deduction process for health care practitioners and ensure that more patient payments are recognized in the gross receipts tax framework.

Statutes affected:
introduced version: 7-9-93