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F I S C A L I M P A C T R E P O R T
SPONSOR Komadina
ORIGINAL DATE
LAST UPDATED
1/23/06
HB
SHORT TITLE
INCREASE CERTAIN MEDICAID PAYMENTS
SB 48
ANALYST Weber
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$750.0
Recurring
General
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to Appropriation in the General Appropriation Act
SOURCES OF INFORMATION
LFC Files
SUMMARY
Senate Bill 48 appropriates $750 thousand from the general fund to the Human Services
Department for the purpose of increasing reimbursement for obstetrical services in the Medicaid
program to ensure access to these services and to offset the cost of medical malpractice practice
insurance.
FISCAL IMPLICATIONS
The appropriation of $750 thousand contained in this bill is a recurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY07 shall revert to the
general fund.
SIGNIFICANT ISSUES
With over 50 percent of New Mexico births reimbursed through the Medicaid program, doctors
in this specialty have limited opportunity to participate in private insurance or other higher
payment methodologies. The generally lower reimbursement rates offered by Medicaid coupled
with the relatively elevated malpractice costs associated with the high-risk of obstetrics create a
disproportionate financial burden on this group. The current version of the General
pg_0002
Senate Bill 48 Page 2
Appropriations Act includes approximately $5 million from the general fund for distribution
among all providers in the Medicaid program.
MW/mt