February 25, 1999

Mr. Speaker:

Your CONSUMER AND PUBLIC AFFAIRS COMMITTEE, to whom has been referred

HOUSE BILL 771

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

1. On page 4, between lines 20 and 21, insert the following new section:

"Section 2. Section 27-11-4 NMSA 1978 (being Laws 1998, Chapter 30, Section 4) is amended to read:

"27-11-4. RETENTION AND PRODUCTION OF RECORDS.--

A. Medicaid providers and their subcontractors shall retain, for a period of at least six years from the date of creation, all medical and business records that are necessary to verify the:

(1) treatment or care of any recipient for which the medicaid provider received payment from the department to provide that benefit or service;

(2) services or goods provided to any recipient for which the medicaid provider received payment from the department to provide that benefit or service;

(3) amounts paid by medicaid or the medicaid provider on behalf of any recipient; and

(4) records required by medicaid under any contract between the department and the medicaid provider.

B. Upon [written] request by the department to a medicaid provider or any subcontractor for copies or inspection of records pursuant to the Public Assistance Act, the medicaid provider or subcontractor shall provide the

copies or permit the inspection, as applicable [within five business days after the date of the request unless the records are held by a subcontractor, agent or satellite office, in which case the records shall be made available within ten business days after the date of the request].

C. Failure to provide copies or to permit inspection of records requested pursuant to this section shall constitute a violation of the Medicaid Provider Act within the meaning of Paragraph (3) of Subsection B of Section [3 of that act] 27-11-3 NMSA 1978."".,

and thence referred to the APPROPRIATIONS & FINANCE COMMITTEE.

Respectfully submitted,

Patsy Trujillo Knauer, Chairwoman

Adopted Not Adopted

(Chief Clerk) (Chief Clerk)

The roll call vote was 4 For 0 Against

Yes: 4

Excused: Hamilton, Hawkins, Vigil

Absent: None

.128117.1

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