By enabling health care practitioners to deduct coinsurance payments, SB455 could lead to significant changes in the way health care is funded and practiced in New Mexico. The bill has the potential to lower the overall tax liability for health care providers, thereby incentivizing them to provide a wider range of services. This could improve patient access to necessary medical care, particularly for those enrolled in managed care health plans that require copayments or deductibles for services received.
Summary
Senate Bill 455 aims to amend the existing Gross Receipts Tax Act in New Mexico to include coinsurance payments made by patients to health care practitioners. The bill is specifically designed to allow health care practitioners to deduct these coinsurance amounts from their gross receipts, improving the financial viability of health care services in the state. The provisions of the bill come into effect on July 1, 2025, providing a transition period for compliance with its requirements.
Contention
However, the bill is not without its points of contention. Concerns have been raised about its potential long-term impacts on state revenue, as allowing these deductions may reduce the overall taxable income reported by health care providers. Critics argue that the bill could create imbalances in funding for state services, as revenue generated from the Gross Receipts Tax may decrease. Furthermore, there is ongoing debate about whether this amendment adequately addresses the complexities of health care financing, particularly the implications for patients who might still face high out-of-pocket costs despite these changes.