0001|                            HOUSE BILL 208
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                        LUCIANO "LUCKY" VARELA
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0005|     
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0006|                                   
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0007|              FOR THE LEGISLATIVE FINANCE COMMITTEE AND
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0008|               THE HEALTH AND WELFARE REFORM COMMITTEE
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO HEALTH; ENACTING THE CHILD HEALTH ACT; CREATING
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0012|     THE HEALTHY KIDS PROGRAM; AMENDING, REPEALING AND ENACTING
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0013|     SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION; DECLARING
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0014|     AN EMERGENCY.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  [NEW MATERIAL] SHORT TITLE.--Sections 1
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0018|     through 7 of this act may be cited as the "Child Health Act".
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0019|          Section 2.  [NEW MATERIAL] DEFINITIONS.--As used in the
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0020|     Child Health Act:
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0021|               A.  "child" means a natural person who has not
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0022|     reached his nineteenth birthday; 
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0023|               B.  "department" means the human services
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0024|     department;  
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0025|               C.  "low-income family" means a family with income
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0001|     at or below the level specified in Section 5 of the Child
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0002|     Health Act; and
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0003|               D.  "secretary" means the secretary of human
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0004|     services.
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0005|          Section 3.  [NEW MATERIAL] HEALTHY KIDS PROGRAM
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0006|     CREATED.--After consultation with the secretary of health and
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0007|     the secretary of children, youth and families, the secretary is
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0008|     directed to design and implement a program to provide health
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0009|     services to children and adults in low-income families in
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0010|     accordance with the provisions of the Child Health Act.  The
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0011|     program shall be known as "healthy kids".  It shall meet the
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0012|     requirements for obtaining allotted federal funds pursuant to
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0013|     the provisions of Title 21 of the federal Social Security Act. 
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0014|     In accordance with those requirements and the requirements of
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0015|     the Child Health Act, the secretary shall prepare and submit a
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0016|     child health plan to the secretary of health and human
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0017|     services.  Healthy kids shall be administered by the
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0018|     department.
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0019|          Section 4.  [NEW MATERIAL] PROGRAM OBJECTIVES--
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0020|     DEVELOPMENT OF PLAN AND ADOPTION OF RULES.--
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0021|               A.  The child health plan and healthy kids shall be
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0022|     designed to achieve the following objectives: 
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0023|                     (1)  expand access to and coverage for full or
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0024|     partial payment for a comprehensive array of personal health
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0025|     services for children and adults in low-income families that do
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0001|     not have those services at present;
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0002|                    (2)  increase measurably the quality of life
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0003|     and well-being for the state's citizens by ensuring the good
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0004|     health of children and adults in low-income families; 
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0005|                    (3)  reduce substantially the occurrence rates
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0006|     of preventable illness and disease, morbidity and mortality in
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0007|     the state's population;
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0008|                    (4)  increase positively the benefit-to-cost
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0009|     ratios of health services provided in the state to the
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0010|     population as a whole while at the same time improving the
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0011|     quality of service when measured by both scientifically
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0012|     objective and beneficiary-perceived criteria; 
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0013|                    (5)  retard escalation of health care costs in
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0014|     all segments of the health care industry; and 
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0015|                    (6)  provide through experimentation and
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0016|     demonstration projects, coupled with any necessary and
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0017|     appropriate federal waivers of conditions for expenditure
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0018|     approval, innovative and imaginative methods of providing
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0019|     health care to all segments of the state's population. 
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0020|               B.  Implementation of an approved child health plan
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0021|     shall be in accordance with rules adopted by the secretary. 
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0022|     The rules shall be designed to achieve and be consistent with
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0023|     the objectives specified in Subsection A of this section. 
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0024|     Those objectives are stated as mandatory standards by which the
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0025|     validity of proposed rules shall be tested.  Additionally, the
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0001|     rules must be consistent with those provisions of the Child
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0002|     Health Act that mandate program requirements.  
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0003|          Section 5.  [NEW MATERIAL] PLAN CONTENT--REQUIRED
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0004|     ELEMENTS.--The child health plan and the program of services to
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0005|     be provided by it shall include:
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0006|               A.  a one-year period measured from the date of
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0007|     federal approval of the child health plan to be known as "phase
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0008|     one", during which the following shall occur: 
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0009|                    (1)  the family income eligibility requirement
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0010|     for participation of children in healthy kids shall be
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0011|     established at two hundred thirty-five percent of the federal
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0012|     poverty level; 
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0013|                    (2)  presumptive eligibility procedures shall
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0014|     be established and initiated;
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0015|                    (3)  a simplified application process shall be
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0016|     established and implemented;  
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0017|                    (4)  the locations of eligibility workers shall
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0018|     be diversified;   
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0019|                    (5)  training for health care providers to
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0020|     enable them to assist families in filling out application forms
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0021|     shall be developed and implemented; and
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0022|                    (6)  specific outreach procedures shall be
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0023|     developed, including within those procedures ways to recognize
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0024|     and accommodate cultural diversity, to involve families of
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0025|     children likely to be eligible for healthy kids or other public
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0001|     or private health coverage programs and to inform these
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0002|     families of the availability of and assist them in enrolling in
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0003|     those programs;
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0004|               B.  a two-year period measured from the date of
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0005|     federal approval of the child health plan to be known as "phase
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0006|     two", during which the following shall occur: 
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0007|                    (1)  a continuum of prevention and intervention
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0008|     services shall be developed and implemented consisting of at
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0009|     least the following, including applications for any federal
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0010|     waivers of conditions that are necessary:
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0011|                         (a)  implementation of a universal home
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0012|     visiting program for mothers having their first child,
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0013|     beginning during pregnancy and extending for two years, with a
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0014|     frequency of use as both desired and medically indicated; 
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0015|                         (b)  creation of a program of early
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0016|     intervention developmental services; 
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0017|                         (c)  provision of a behavioral health
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0018|     identification, assessment and management system; 
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0019|                         (d)  expansion of school-based health
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0020|     services into the network of health care programs; 
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0021|                         (e)  expansion of the healthier kids fund
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0022|     administered by the department of health to enable children to
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0023|     have effective access to health care; and 
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0024|                         (f)  development of ways to increase
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0025|     children's dental services; and
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0001|                    (2)  development of a plan to provide health
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0002|     services to uninsured parents of children eligible for healthy
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0003|     kids;
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0004|               C.  twelve months of continuous coverage for healthy
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0005|     kids beneficiaries;
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0006|               D.  a requirement that no asset test be imposed as a
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0007|     condition of eligibility for children; 
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0008|               E.  provisions for inhibiting or preventing both
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0009|     employer crowd-out and employee crowd-out;
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0010|               F.  requirements that in its development and
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0011|     implementation interests of Native American children are
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0012|     identified and that appropriate provisions for their enrollment
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0013|     are made with recognition that the application process and the
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0014|     delivery of services with respect to those children present
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0015|     special cultural and other considerations;
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0016|               G.  provisions for the coordination of the
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0017|     administration of healthy kids with other public and private
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0018|     health programs;
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0019|               H.  identification and implementation of methods,
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0020|     including monitoring, used to ensure the quality and
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0021|     appropriateness of care, particularly with respect to well-baby
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0022|     care, well-child care and immunizations provided under the plan
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0023|     and to ensure access to covered services, including emergency
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0024|     services; 
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0025|               I.  methods by which the state will collect data,
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0001|     maintain the records and furnish required reports to the
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0002|     secretary of health and human services; and
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0003|               J.  specific requirements for and description of the
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0004|     means to be used to ensure that members of the public will be
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0005|     involved in the design and implementation of the plan and a
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0006|     description of a method to ensure ongoing public involvement. 
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0007|          Section 6.  [NEW MATERIAL] CREATION OF LEGISLATIVE
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0008|     OVERSIGHT COMMITTEE--AUTHORITY AND DUTIES.--
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0009|               A.  There is created a joint interim legislative
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0010|     committee, which shall be known as the "healthy kids oversight
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0011|     committee". 
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0012|               B.  The committee shall be composed of eight
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0013|     members.  Four members of the house of representatives shall be
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0014|     appointed by the speaker of the house of representatives and
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0015|     four members of the senate shall be appointed by the
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0016|     committees' committee of the senate or, if the senate
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0017|     appointments are made in the interim, by the president pro
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0018|     tempore of the senate after consultation with and agreement of
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0019|     a majority of the members of the committees' committee. Members
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0020|     shall be appointed so that there is a member from each of the
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0021|     major political parties from each house.  No member who has a
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0022|     financial interest in an insurance company or health care
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0023|     provider shall be appointed to the committee. 
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0024|               C.  The healthy kids oversight committee shall
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0025|     oversee the development and operations of healthy kids created
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0001|     pursuant to the Child Health Act.  It shall fulfill any
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0002|     responsibilities delegated to it pursuant to that act. 
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0003|               D.  The committee shall report annually its findings
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0004|     and recommendations regarding healthy kids to each regular
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0005|     session of the legislature and shall include in that report any
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0006|     recommendations for changes in the laws pertaining to the
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0007|     program.  
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0008|          Section 7.  [NEW MATERIAL] CREATION OF HEALTHY KIDS FUND.-
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0009|     -
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0010|     The "healthy kids fund" is created in the state treasury. 
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0011|     Revenue consisting of all amounts shall be deposited in the fund. 
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0012|     Interest earned by investment of the fund shall be deposited in
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0013|     the fund.  Balances of the fund shall not revert to the general
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0014|     fund at the close of any fiscal year. Expenditures from the fund
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0015|     shall be made pursuant to warrants drawn by the department of
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0016|     finance and administration upon vouchers submitted by the
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0017|     secretary of human services for the purpose of providing state
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0018|     funds needed to match federal funds for payment of the costs of
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0019|     healthy kids operated by the human services department pursuant
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0020|     to the Child Health Act. 
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0021|          Section 8.  Section 27-2-1 NMSA 1978 (being Laws 1973,
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0022|     Chapter 376, Section 1) is amended to read:
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0023|          "27-2-1.  SHORT TITLE.--Sections [1 through 20 of this act
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0024|     and Sections 13-1-9, 13-1-10, 13-1-12, 13-1-13, 13-1-17,
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0025|     13-1-18, 13-1-18.1, 13-1-19, 13-1-20, 13-1-20.1, 13-1-21,
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0001|     13-1-22, 13-1-27, 13-1-27.2, 13-1-27.3, 13-1-27.4, 13-1-28,
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0002|     13-1-28.6, 13-1-29, 13-1-30, 13-1-34, 13-1-35, 13-1-37, 13-1-39,
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0003|     13-1-40, 13-1-41 and 13-1-42 NMSA 1953] 27-2-1 through 27-2-36
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0004|     NMSA 1978 may be cited as the "Public Assistance Act"." 
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0005|          Section 9.  Section 27-2-12 NMSA 1978 (being Laws 1973,
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0006|     Chapter 376, Section 16, as amended) is amended to read:
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0007|          "27-2-12.  MEDICAL ASSISTANCE [PROGRAMS] PROGRAM--
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0008|     MEDICAID.--Consistent with the federal act and subject to the
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0009|     appropriation and availability of federal and state funds, the
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0010|     medical assistance division of the human services department may
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0011|     by [regulation] rule provide medical assistance [including
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0012|     the services of licensed doctors of oriental medicine and
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0013|     licensed chiropractors, to persons eligible for public assistance
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0014|     programs under the federal act] pursuant to a state plan
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0015|     approved by the federal health and human services department in
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0016|     accordance with Title 19 of the federal act.  This medical
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0017|     assistance program shall be known as "medicaid"."
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0018|          Section 10.  Section 27-2-12.2 NMSA 1978 (being Laws 1987,
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0019|     Chapter 16, Section 1, as amended) is amended to read:
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0020|          "27-2-12.2.  [MEDICAL ASSISTANCE PROGRAM] MEDICAID--
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0021|     ELIGIBILITY OF MARRIED INDIVIDUALS.--For the purpose of
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0022|     determining [medical assistance] medicaid eligibility for
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0023|     the institutional care program [eligibility under the Public
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0024|     Assistance Act], the community spouse resource allowance for a
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0025|     community spouse as defined and authorized by the federal
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0001|     Medicare Catastrophic Coverage Act of 1988 shall be a minimum of
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0002|     thirty thousand dollars ($30,000)."
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0003|          Section 11.  Section 27-2-12.3 NMSA 1978 (being Laws 1987,
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0004|     Chapter 269, Section 1, as amended) is amended to read:
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0005|          "27-2-12.3.  MEDICAID REIMBURSEMENT--EQUAL PAY FOR EQUAL
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0006|     PHYSICIANS', DENTISTS', OPTOMETRISTS', PODIATRISTS' AND
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0007|     PSYCHOLOGISTS' SERVICES.--The [human services] department shall
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0008|     establish a rate for the reimbursement of physicians, dentists,
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0009|     optometrists, podiatrists and psychologists for services rendered
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0010|     to medicaid patients that provides equal reimbursement for the
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0011|     same or similar services rendered without respect to the date on
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0012|     which such physician, dentist, optometrist, podiatrist or
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0013|     psychologist entered into practice in New Mexico; the date on
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0014|     which the physician, dentist, optometrist, podiatrist or
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0015|     psychologist entered into an agreement or contract to provide
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0016|     such services; or the location in which such services are to be
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0017|     provided in the state; provided, however, that the requirements
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0018|     of this section shall not apply when the [human services]
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0019|     department contracts with entities pursuant to Section 27-2-12.6
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0020|     NMSA 1978 to negotiate a rate for the reimbursement for services
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0021|     rendered to medicaid patients in the medicaid managed care
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0022|     system."
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0023|          Section 12.  Section 27-2-12.4 NMSA 1978 (being Laws 1987,
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0024|     Chapter 214, Section 1) is amended to read:
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0025|          "27-2-12.4.  LONG-TERM CARE FACILITIES--NONCOMPLIANCE WITH
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0001|     STANDARDS AND CONDITIONS--SANCTIONS.--
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0002|               A.  In addition to any other actions required or
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0003|     permitted by federal law or regulation, the [human services]
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0004|     department shall impose a hold on [state] medicaid payments to
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0005|     a long-term care facility thirty days after the department of
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0006|     health [and environment department] notifies the [human
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0007|     services] department in writing pursuant to an on-site visit
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0008|     that the long-term care facility is not in substantial compliance
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0009|     with the standards or conditions of participation promulgated by
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0010|     the federal department of health and human services pursuant to
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0011|     which the facility is a party to a medicaid provider agreement,
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0012|     unless the substantial noncompliance has been corrected within
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0013|     that thirty-day period or the facility's medicaid provider
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0014|     agreement is terminated or not renewed based in whole or in part
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0015|     on the noncompliance.  The written notice shall cite the specific
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0016|     deficiencies that constitute noncompliance.
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0017|               B.  The [human services] department shall remove the
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0018|     payment hold imposed under Subsection A of this section when the
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0019|     department of health [and environment department], pursuant
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0020|     to an on-site visit, certifies in writing to the [human
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0021|     services] department that the long-term care facility is in
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0022|     substantial compliance with the standards or conditions of
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0023|     participation pursuant to which the facility is a party to a
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0024|     medicaid provider agreement.
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0025|               C.  The [human services] department shall not
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0001|     reimburse any long-term care facility during the payment hold
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0002|     period imposed pursuant to Subsection A of this section for any
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0003|     medicaid [recipient-patients] patients who are new admissions
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0004|     and who are admitted on or after the day the hold is imposed and
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0005|     prior to the day the hold is removed.
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0006|               D.  If a long-term care facility is certified in
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0007|     writing to be in noncompliance pursuant to Subsection A of this
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0008|     section for the second time in any twelve-month period, the
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0009|     [human services] department shall cancel or refuse to execute
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0010|     the long-term care facility's medicaid provider agreement for a
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0011|     two-month period, unless it can be demonstrated that harm to the
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0012|     patients would result from this action or that good cause exists
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0013|     to allow the facility to continue to participate in [the]
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0014|     medicaid [program].  The provisions of this subsection are
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0015|     subject to appeal procedures set forth in federal regulations for
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0016|     nonrenewal or termination of a medicaid provider agreement.
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0017|               E.  A long-term care facility shall not charge
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0018|     medicaid [recipient-patients] beneficiaries, their families
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0019|     or their responsible parties to recoup [any] payments not
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0020|     received because of a hold on medicaid payments imposed pursuant
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0021|     to this section.
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0022|               F.  This section [shall not be construed to] does
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0023|     not affect any other provisions for medicaid provider agreement
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0024|     termination, nonrenewal, due process and appeal pursuant to
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0025|     federal law or regulation.
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0001|               G.  As used in this section:
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0002|                    (1)  "day" means a twenty-four hour period
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0003|     beginning at midnight and ending one second before midnight;
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0004|                    (2)  "long-term care facility" means any
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0005|     intermediate care facility or skilled nursing facility [which]
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0006|     that is licensed by the department of health [and
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0007|     environment department] and [which] is medicaid certified;
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0008|                    (3)  "new admissions" means medicaid
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0009|     [recipients] patients who have never been in the long-term
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0010|     care facility or, if previously admitted, had been discharged or
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0011|     had voluntarily left the facility, but the term does not include:
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0012|                         (a)  individuals who were in the long-term
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0013|     care facility before the effective date of the hold on medicaid
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0014|     payments and became eligible for medicaid after that date; and
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0015|                         (b)  individuals who, after a temporary
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0016|     absence from the facility, are readmitted to beds reserved for
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0017|     them in accordance with federal regulations; and
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0018|                    (4)  "substantial compliance" means the condition
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0019|     of having no cited deficiencies or having only those cited
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0020|     deficiencies [which] that:
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0021|                         (a)  are not inconsistent with any federal
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0022|     statutory requirement;
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0023|                         (b)  do not interfere with adequate patient
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0024|     care;
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0025|                         (c)  do not represent a hazard to the
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0001|     patients' health or safety;
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0002|                         (d)  are capable of correction within a
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0003|     reasonable period of time; and
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0004|                         (e)  are [ones which] deficiencies the
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0005|     long-term care facility is making reasonable plans to correct."
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0006|          Section 13.  Section 27-2-12.5 NMSA 1978 (being Laws 1989,
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0007|     Chapter 83, Section 1, as amended) is amended to read:
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0008|          "27-2-12.5.  MEDICAID-CERTIFIED NURSING FACILITIES--
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0009|     RETROACTIVE ELIGIBILITY--REFUNDS--PENALTY.--
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0010|               A.  Medicaid payment for a medicaid-eligible patient
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0011|     shall be accepted by a medicaid-certified nursing facility from
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0012|     the first month of medicaid eligibility, regardless of whether
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0013|     the eligibility is retroactive.  The nursing facility shall
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0014|     refund to the patient or responsible party all out-of-pocket
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0015|     money except for required medical-care credits paid to the
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0016|     nursing facility for that patient's care on and after the date of
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0017|     medicaid eligibility for services covered by the medicaid
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0018|     program.  Within thirty days after notification by the [human
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0019|     services] department of the patient's medicaid eligibility, the
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0020|     nursing facility shall make any necessary refund to the patient
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0021|     or responsible party required under this section.
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0022|               B.  In any [cause of action] lawsuit brought
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0023|     against a nursing facility because of its failure to make a
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0024|     refund to the patient or responsible party as required under
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0025|     Subsection A of this section, the patient or responsible party
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0001|     may be awarded damages equal to triple the amount of the money
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0002|     not refunded or three hundred dollars ($300), whichever is
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0003|     greater, [and] reasonable [attorneys'] attorney fees and
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0004|     [court] costs."
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0005|          Section 14.  Section 27-2-12.6 NMSA 1978 (being Laws 1994,
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0006|     Chapter 62, Section 22) is amended to read:
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0007|          "27-2-12.6.  MEDICAID PAYMENTS--MANAGED CARE.--
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0008|               A.  The department shall provide for a statewide
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0009|     managed care system to provide cost-efficient, preventive,
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0010|     primary and acute health care for medicaid [recipients by July
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0011|     1, 1995] beneficiaries.
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0012|               B.  The managed care system shall ensure:
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0013|                    (1)  access to medically necessary services,
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0014|     particularly for medicaid [recipients] beneficiaries with
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0015|     chronic health problems; 
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0016|                    (2)  to the extent practicable, maintenance of
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0017|     the rural primary care delivery infrastructure;
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0018|                    (3)  that the department's approach is consistent
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0019|     with national and state health care reform principles; and
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0020|                    (4)  to the maximum extent possible, that
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0021|     [medicaid-eligible individuals] beneficiaries are not
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0022|     identified as such except as necessary for billing purposes. 
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0023|               C.  The department may exclude nursing homes,
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0024|     intermediate care facilities for the mentally retarded, medicaid
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0025|     in-home and community-based waiver services and residential and
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0001|     community-based mental health services for children with serious
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0002|     emotional disorders from the provisions of this section."
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0003|          Section 15.  Section 27-2-12.7 NMSA 1978 (being Laws 1980,
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0004|     Chapter 86, Section 1) is amended to read:
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0005|          "27-2-12.7.  MEDICAID--HUMAN SERVICES DEPARTMENT EMPLOYEES--
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0006|     STANDARDS OF CONDUCT--ENFORCEMENT.--
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0007|               A.  As used in this section:
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0008|                    (1)  "business" means a corporation, partnership,
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0009|     sole proprietorship, firm, organization or individual carrying on
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0010|     a business;
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0011|                    [(2)  "department" means the human services
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0012|     department;
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0013|                    (3)] (2)  "employee" means [any] a person
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0014|     who has been appointed to or hired for [any] a department
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0015|     office connected with the administration of medicaid funds and
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0016|     who receives compensation in the form of salary;
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0017|                    [(4)] (3)  "employee with responsibility"
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0018|     means an employee who is directly involved in or has a
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0019|     significant part in the medicaid decision-making, regulatory,
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0020|     procurement or contracting process; and
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0021|                    [(5)] (4)  "financial interest" means an
    |
0022|     interest held by an individual, his spouse or minor child
    |
0023|     [which] that is:
    |
0024|                         (a)  an ownership interest in business; or
    |
0025|                         (b)  [any] an employment or prospective
    |
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0001|     employment for which negotiations have already begun.
    |
0002|               B.  No employee with responsibility shall, for twenty-
    |
0003|     four months following the date on which he ceases to be an
    |
0004|     employee, act as agent or attorney for [any other] another
    |
0005|     person or business in connection with a judicial or
    |
0006|     administrative proceeding, application, ruling, contract, claim
    |
0007|     or other matter relating to the medicaid program with respect to
    |
0008|     which the employee made an investigation, rendered [any] a
    |
0009|     ruling or was otherwise substantially and directly involved
    |
0010|     during the last year he was an employee and [which] that was
    |
0011|     actually pending under his responsibility within that period.
    |
0012|               C.  No [department] secretary of human services,
    |
0013|     income support division director or medical assistance bureau
    |
0014|     chief or their deputies shall, for twelve months following the
    |
0015|     date on which he ceases to be an employee, participate [in any
    |
0016|     manner] with respect to a judicial or administrative proceeding,
    |
0017|     application, ruling, contract, claim or other matter relating to
    |
0018|     the medicaid program and pending before the department.
    |
0019|               D.  No employee with responsibility shall participate
    |
0020|     [in any manner] with respect to a judicial or administrative
    |
0021|     proceeding, application, ruling, contract, claim or other matter
    |
0022|     relating to the medicaid program and involving his spouse, minor
    |
0023|     child or [any] a business in which he has a financial
    |
0024|     interest unless prior to [such] the participation:
    |
0025|                    (1)  full disclosure of his relationship or
    |
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0001|     financial interest is made in writing to the secretary of [the
    |
0002|     department] human services; and
    |
0003|                    (2)  a written determination is made by the
    |
0004|     secretary of human services that the disclosed relationship or
    |
0005|     financial interest is too remote or inconsequential to affect the
    |
0006|     integrity of the services of the employee.
    |
0007|               E.  Violation of any of the provisions of this section
    |
0008|     by an employee is grounds for dismissal, demotion or suspension. 
    |
0009|     A former employee who violates [any of the provisions] a
    |
0010|     provision of this section [shall be] is subject to
    |
0011|     assessment by the department of a civil money penalty of two
    |
0012|     hundred fifty dollars ($250) for each violation.  The department
    |
0013|     shall promulgate [regulations] rules to provide for an
    |
0014|     administrative appeal of any assessment imposed."
    |
0015|          Section 16.  Section 27-2-12.8 (being Laws 1997, Chapter
    |
0016|     264, Section 1) is amended to read:
    |
0017|          "27-2-12.8  MAMMOGRAMS FOR MEDICAID [RECIPIENTS]
    |
0018|     BENEFICIARIES.--In providing coverage for mammograms under the
    |
0019|     medicaid program, the department shall ensure that:
    |
0020|               A.  patients will not be routinely solicited for
    |
0021|     mammograms and that mammograms will only be performed based on
    |
0022|     nationally recognized standards; and
    |
0023|               B.  any fee for service payment that [shall be] is
    |
0024|     made on behalf of [the] medicaid [program] for a mammogram of
    |
0025|     a medicaid [recipient] beneficiary shall be consistent with
    |
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0001|     and not exceed the usual and customary charge that reflects the
    |
0002|     reasonable fair market value of the cost of a mammogram."
    |
0003|          Section 17.  Section 27-2-13 NMSA 1978 (being Laws 1973,
    |
0004|     Chapter 376, Section 17) is amended to read:
    |
0005|          "27-2-13.  CONFLICT IN FEDERAL AND STATE LAWS.--Any section
    |
0006|     of the NMSA [1953] 1978 [relating to] authorizing public
    |
0007|     assistance [which] that is in conflict with the provisions of
    |
0008|     the federal act, [or] the federal Food Stamp Act, [as may be
    |
0009|     amended from time to time, and] or federal regulations issued
    |
0010|     pursuant [thereto] to those acts shall be suspended in its
    |
0011|     operation if the attorney general certifies that [such] the
    |
0012|     conflict exists."
    |
0013|          Section 18.  Section 27-2-15 NMSA 1978 (being Laws 1937,
    |
0014|     Chapter 18, Section 9) is amended to read:
    |
0015|          "27-2-15.  COOPERATION WITH THE UNITED STATES.--
    |
0016|               A.  The [State] department is [hereby]
    |
0017|     designated as the state agency to cooperate with the federal
    |
0018|     government in the administration of the provisions of [Title 1,
    |
0019|     Title 4, part 2 and 3 of Title 5 and Title 10] Titles 4 and 19
    |
0020|     of the federal [Social Security Act.  The State Board is hereby
    |
0021|     authorized and directed to cooperate with the proper departments
    |
0022|     of the federal government and with all other departments of the
    |
0023|     state and local governments in the enforcement and administration
    |
0024|     of such provisions of the federal Social Security Act, and any
    |
0025|     amendments thereto and the rules and regulations issued
    |
- 19 -
0001|     thereunder, and in compliance therewith in the manner prescribed
    |
0002|     in this act or as otherwise provided by law] act.
    |
0003|               B.  The department shall [also] make reports in
    |
0004|     [such] the form and containing [such] the information
    |
0005|     [as any] required by an agency or instrumentality of the
    |
0006|     United States with which it is cooperating [may from time to
    |
0007|     time require], and shall comply with [such] those provisions
    |
0008|     [as any such] a federal agency or instrumentality may [from
    |
0009|     time to time] find necessary to assure the correctness and
    |
0010|     verification of [such] the reports."
    |
0011|          Section 19.  Section 27-2-17 NMSA 1978 (being Laws 1937,
    |
0012|     Chapter 18, Section 10) is amended to read:
    |
0013|          "27-2-17.  CUSTODIAN OF FUNDS.--The [State] department is
    |
0014|     [hereby] designated as the custodian, subject to the provisions
    |
0015|     of Section [21 of this Act] 27-2-33 NMSA 1978, of [any and]
    |
0016|     all [monies which may be] money received by the state [of
    |
0017|     New Mexico which] that the [State Board of Public Welfare]
    |
0018|     department is authorized to administer pursuant to the Public
    |
0019|     Assistance Act, from any appropriations made by the congress of
    |
0020|     the United States for the purpose of cooperating with the several
    |
0021|     states in the enforcement and administration of the provisions of
    |
0022|     the federal [Social Security] act referred to in Section [9]
    |
0023|     27-2-15 NMSA 1978 and all [monies] money received from any
    |
0024|     other source for [the] purposes [set forth in this Act]
    |
0025|     authorized by the Public Assistance Act.  The [State]
    |
- 20 -
0001|     department is [hereby] authorized to receive such [monies]
    |
0002|     money, provide for [the] its proper custody [thereof] and
    |
0003|     [to] make disbursements [therefrom] of it under such rules
    |
0004|     [and regulations] as the [State Board] department may
    |
0005|     prescribe."
    |
0006|      Section 20.  Section 27-2-23 NMSA 1978 (being Laws 1969,
    |
0007|     Chapter 232, Section 1) is amended to read:
    |
0008|      "27-2-23.  THIRD PARTY LIABILITY FOR MEDICAID
    |
0009|     EXPENDITURES.--
    |
0010|           A.  The [health and social services] department
    |
0011|     shall make reasonable efforts to ascertain [any] legal
    |
0012|     liability of third parties who are or may be liable to pay all or
    |
0013|     part of the medical cost of injury, disease or disability of an
    |
0014|     applicant for or recipient of [medical assistance]
    |
0015|     medicaid.
    |
0016|           B.  When the department makes [medical assistance]
    |
0017|     medicaid payments [in behalf of a recipient] for a medicaid
    |
0018|     beneficiary, the department is subrogated to any right of the
    |
0019|     [recipient] beneficiary against a third party for recovery of
    |
0020|     medical expenses to the extent that the department has made
    |
0021|     payment."
    |
0022|      Section 21.  Section 27-2-23.1 NMSA 1978 (being Laws 1989,
    |
0023|     Chapter 184, Section 1) is amended to read:
    |
0024|      "27-2-23.1.  EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
    |
0025|     1974--EMPLOYEE HEALTH BENEFIT PLANS--CLAUSES TO EXCLUDE MEDICAID
    |
- 21 -
0001|     COVERAGE PROHIBITED.--No employee health benefit plan established
    |
0002|     under the Employee Retirement Income Security Act of 1974, 29
    |
0003|     U.S.C. 1144 that provides payments for health care on behalf of
    |
0004|     individuals residing in the state shall contain any provisions
    |
0005|     excluding or limiting coverage or payment for any health care for
    |
0006|     an individual who would otherwise be covered or entitled to
    |
0007|     benefits or services under the terms of the employee health
    |
0008|     benefit plan because that individual is provided or is eligible
    |
0009|     for benefits [under the] pursuant to medicaid [program of
    |
0010|     this state pursuant to Title XIX of the federal Social Security
    |
0011|     Act, 42 U.S.C. 1396, et seq.]."
    |
0012|      Section 22.  Section 27-2-33 NMSA 1978 (being Laws 1937,
    |
0013|     Chapter 18, Section 21) is amended to read:
    |
0014|      "27-2-33.  METHOD OF HANDLING FUNDS.--
    |
0015|           A.  All [monies] money received from the federal
    |
0016|     government for carrying out [of] any of the purposes of [this
    |
0017|     Act] Chapter 27 NMSA 1978 and all other funds received by the
    |
0018|     [State] department under the provisions of [this Act] that
    |
0019|     chapter shall be [by it] paid [over] to the state treasurer
    |
0020|     and [shall be by him] kept in a separate fund known as the
    |
0021|     "social security fund" [and].  All [monies] money in
    |
0022|     [such] the fund [are hereby] is appropriated to the
    |
0023|     [State Board] department for [the] carrying out [of] the
    |
0024|     purposes of [this Act] Chapter 27 NMSA 1978, provided that
    |
0025|     all [monies] money received from the federal government shall
    |
- 22 -
0001|     be spent solely for the purposes for which [said] the funds
    |
0002|     were granted.
    |
0003|           B.  [By resolution of the State Board requisitions
    |
0004|     shall be made from time to time] The department shall request
    |
0005|     from the state treasurer [for] the funds needed [for the
    |
0006|     carrying] to carry out [of any of] the purposes of [this
    |
0007|     Act, and] Chapter 27 NMSA 1978.  The funds [so
    |
0008|     requisitioned] shall be disbursed under rules [and
    |
0009|     regulations] of the [State Board provided, however, that the
    |
0010|     State Board] department, but it  shall not [requisition]
    |
0011|     request at any one time [and] or have on hand more than
    |
0012|     sufficient [monies] money to meet its estimated needs for a
    |
0013|     period of sixty days.
    |
0014|           C.  The [State Board] department shall be
    |
0015|     subject at all times to audit by the state [Comptroller or any
    |
0016|     other] auditor, an agency provided by law [provided that an
    |
0017|     audit by any] or a private auditor approved by the state
    |
0018|     [Comptroller may be accepted by him] auditor.  The [State
    |
0019|     Board] department may, with the approval of the state
    |
0020|     [Comptroller] auditor, provide for a continuous audit of its
    |
0021|     transactions."
    |
0022|      Section 23.  APPROPRIATION.--Two million nine hundred
    |
0023|     thousand dollars ($2,900,000) is appropriated from the general
    |
0024|     fund to the healthy kids fund for expenditure by the human
    |
0025|     services department in fiscal years 1998 and 1999 to implement
    |
- 23 -
0001|     the healthy kids program as authorized by the Child Health Act. 
    |
0002|     Any unexpended or unencumbered balance remaining in the fund at
    |
0003|     the end of fiscal year 1999 shall revert to the general fund.
    |
0004|      Section 24.  REPEAL.--Sections 27-2-16 and 27-2-36 NMSA 1978
    |
0005|     (being Laws 1974, Chapter 31, Section 1 and Laws 1921, Chapter
    |
0006|     117, Section 9, as amended) are repealed. 
    |
0007|      Section 25.  EMERGENCY.--It is necessary for the public
    |
0008|     peace, health and safety that this act take effect immediately.
    |
0009|                                
    |