New Mexico House Bill HB119

New Mexico 2025 Regular Session

• Introduced: 1/21/25
• Report Pass: 2/10/25

Caption

Contract Adjustments Under Procurement Code

Impact

If enacted, HB119 will significantly impact how state contracts are managed, particularly those that involve healthcare providers under both Medicaid and Medicare programs. The bill mandates that state agencies respond to requests for contract adjustments within a specified timeframe, which could lead to more predictable financial planning for contractors and healthcare providers. By requiring state agencies to request adjustments in reimbursement rates from federal authorities for Medicaid and Medicare in line with state legislative changes, the bill aims to protect the financial interests of healthcare providers serving Medicaid recipients and ensure continued access to services.

Summary

House Bill 119 is a legislative proposal introduced in the 57th Legislature of the State of New Mexico, focusing on amendments to the state's Procurement Code. The bill aims to provide a framework for contract adjustments based on changes in employee wages and benefits, particularly in the context of state contracts where the compensation of employees is subject to statutory modifications. By enabling contractors and Medicaid providers to request adjustments in reimbursement rates following changes in state law, HB119 seeks to ensure that contractors can accommodate increasing costs attributed to mandated changes in wages and benefits directly tied to state statutes.

Contention

While the bill presents clear provisions aimed at protecting the interests of contractors and healthcare providers, it may also raise questions regarding fiscal responsibility and state budget management. There may be contention regarding how these adjustments will affect state funding and budget allocations, especially in a financial environment that is often constrained. Additionally, stakeholders may debate whether the proposed framework adequately addresses the needs of healthcare service providers while maintaining an equitable balance with taxpayer interests.