New Mexico 2025 Regular Session

New Mexico House Bill HB344 Compare Versions

Only one version of the bill is available at this time.

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28	28	HOUSE BILL 344
29	29	57
30	30	TH LEGISLATURE
31	31	-
32	32
33	33	STATE
34	34
35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Dayan Hochman-Vigil and Meredith A. Dixon
48	48	AN ACT
49	49	RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION
50	50	FOR THE SALE OF MEDICAL EQUIPMENT, SUPPLIES AND DRUGS;
51	51	PROVIDING A GROSS RECEIPTS TAX DEDUCTION TO RECEIPTS FOR
52	52	CERTAIN HEALTH CARE SERVICES, EXCEPT FOR THOSE FOR MEDICAID
53	53	PATIENTS; REMOVING THE SUNSET DATE OF A GROSS RECEIPTS TAX
54	54	DEDUCTION FOR RECEIPTS FROM COPAYMENTS OR DEDUCTIBLES PAID BY
55	55	AN INSURED OR ENROLLEE TO A HEALTH CARE PRACTITIONER OR AN
56	56	ASSOCIATION OF HEALTH CARE PRACTITIONERS; EXTENDING A GROSS
57	57	RECEIPTS TAX DEDUCTION TO RECEIPTS FROM A PATIENT PAID TO A
58	58	HEALTH CARE PRACTITIONER OR AN ASSOCIATION OF HEALTH CARE
59	59	PRACTITIONERS FOR HEALTH CARE SERVICES THAT ARE NOT PERFORMED
60	60	PURSUANT TO A CONTRACT WITH A MANAGED CARE ORGANIZATION OR
61	61	HEALTH CARE INSURER; PROVIDING THAT A HEALTH CARE PROVIDER
62	62	RECEIVING MEDICAID REIMBURSEMENT SHALL BE REIMBURSED FOR ALL
63	63	APPLICABLE GROSS RECEIPTS TAXES THAT THE PROVIDER IS REQUIRED
64	64	.230475.1 underscored material = new
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91	91	TO PAY.
92	92	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
93	93	SECTION 1. Section 7-9-93 NMSA 1978 (being Laws 2004,
94	94	Chapter 116, Section 6, as amended) is amended to read:
95	95	"7-9-93. DEDUCTION--GROSS RECEIPTS--CERTAIN RECEIPTS FOR
96	96	SERVICES PROVIDED BY HEALTH CARE PRACTITIONER OR ASSOCIATION OF
97	97	HEALTH CARE PRACTITIONERS.--
98	98	A. Receipts of a health care practitioner or an
99	99	association of health care practitioners for commercial
100	100	contract services or medicare part C services paid by a managed
101	101	care organization or health care insurer may be deducted from
102	102	gross receipts if the services are within the scope of practice
103	103	of the health care practitioner providing the service.
104	104	[Receipts from fee-for-service payments by a health care
105	105	insurer may not be deducted from gross receipts. ]
106	106	B. [Prior to July 1, 2028 ] Receipts from a
107	107	copayment or deductible paid by an insured or enrollee to a
108	108	health care practitioner or an association of health care
109	109	practitioners for commercial contract services pursuant to the
110	110	terms of the insured's health insurance plan or enrollee's
111	111	managed care health plan may be deducted from gross receipts if
112	112	the services are within the scope of practice of the health
113	113	care practitioner providing the service.
114	114	C. Receipts from a patient to a health care
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143	143	practitioner or an association of health care practitioners for
144	144	health care services that are not performed pursuant to a
145	145	contract with a managed care organization or health care
146	146	insurer may be deducted from gross receipts if the services are
147	147	within the scope of practice of the health care practitioner
148	148	providing the service.
149	149	[C.] D. The deductions provided by this section
150	150	shall be applied only to gross receipts remaining after all
151	151	other allowable deductions available under the Gross Receipts
152	152	and Compensating Tax Act have been taken, except for deductions
153	153	pursuant to Section 7-9-93.1 NMSA 1978.
154	154	[D.] E. A taxpayer allowed a deduction pursuant to
155	155	this section shall report the amount of the deduction
156	156	separately in a manner required by the department.
157	157	[E. The department shall compile an annual report
158	158	on the deductions provided by this section that shall include
159	159	the number of taxpayers that claimed the deductions, the
160	160	aggregate amount of deductions claimed and any other
161	161	information necessary to evaluate the effectiveness of the
162	162	deductions. The department shall present the report to the
163	163	revenue stabilization and tax policy committee and the
164	164	legislative finance committee with an analysis of the cost of
165	165	the deductions.]
166	166	F. The deductions provided by this section shall be
167	167	included in the tax expenditure budget pursuant to Section
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196	196	7-1-84 NMSA 1978, including the number of taxpayers that
197	197	claimed each deduction, the aggregate amount of deductions
198	198	claimed and any other information necessary to evaluate the
199	199	cost and effectiveness of the deductions.
200	200	[F.] G. As used in this section:
201	201	(1) "association of health care practitioners"
202	202	means a corporation, an unincorporated business entity or other
203	203	legal entity organized by, owned by or employing one or more
204	204	health care practitioners; provided that the entity is not:
205	205	(a) an organization granted exemption
206	206	from the federal income tax by the United States commissioner
207	207	of internal revenue as organizations described in Section
208	208	501(c)(3) of the United States Internal Revenue Code of 1986,
209	209	as that section may be amended or renumbered; or
210	210	(b) a health maintenance organization or
211	211	a hospital, hospice, nursing home or an entity that is solely
212	212	an outpatient facility or intermediate care facility licensed
213	213	[pursuant to the Public Health Act ] by the health care
214	214	authority;
215	215	(2) "commercial contract services" means
216	216	health care services performed by a health care practitioner
217	217	pursuant to a contract with a managed care organization or
218	218	health care insurer other than those health care services
219	219	provided for medicare patients pursuant to Title 18 of the
220	220	federal Social Security Act or for medicaid patients pursuant
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249	249	to Title 19 or Title 21 of the federal Social Security Act;
250	250	(3) "copayment" means a fixed dollar amount
251	251	that a health care insurer or managed care health plan requires
252	252	an insured or enrollee to pay upon incurring an expense for
253	253	receiving medical services;
254	254	(4) "deductible" means the amount of covered
255	255	charges an insured or enrollee is required to pay in a plan
256	256	year for commercial contract services before the insured's
257	257	health insurance plan or enrollee's managed care health plan
258	258	begins to pay for applicable covered charges;
259	259	[(5) "fee-for-service" means payment for
260	260	health care services by a health care insurer for covered
261	261	charges under an indemnity insurance plan;
262	262	(6)] (5) "health care insurer" means a person
263	263	that:
264	264	(a) has a valid certificate of authority
265	265	in good standing pursuant to the New Mexico Insurance Code to
266	266	act as an insurer, health maintenance organization or nonprofit
267	267	health care plan or prepaid dental plan; and
268	268	(b) contracts to reimburse licensed
269	269	health care practitioners for providing basic health services
270	270	to enrollees at negotiated fee rates;
271	271	[(7)] (6) "health care practitioner" means:
272	272	(a) a chiropractic physician licensed
273	273	pursuant to the provisions of the Chiropractic Physician
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302	302	Practice Act;
303	303	(b) a dentist or dental hygienist
304	304	licensed pursuant to the Dental Health Care Act;
305	305	(c) a doctor of oriental medicine
306	306	licensed pursuant to the provisions of the Acupuncture and
307	307	Oriental Medicine Practice Act;
308	308	(d) an optometrist licensed pursuant to
309	309	the provisions of the Optometry Act;
310	310	(e) an osteopathic physician licensed
311	311	pursuant to the provisions of the Medical Practice Act;
312	312	(f) a physical therapist licensed
313	313	pursuant to the provisions of the Physical Therapy Act;
314	314	(g) a physician or physician assistant
315	315	licensed pursuant to the provisions of the Medical Practice
316	316	Act;
317	317	(h) a podiatric physician licensed
318	318	pursuant to the provisions of the Podiatry Act;
319	319	(i) a psychologist licensed pursuant to
320	320	the provisions of the Professional Psychologist Act;
321	321	(j) a registered lay midwife registered
322	322	by the department of health;
323	323	(k) a registered nurse or licensed
324	324	practical nurse licensed pursuant to the provisions of the
325	325	Nursing Practice Act;
326	326	(l) a registered occupational therapist
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355	355	licensed pursuant to the provisions of the Occupational Therapy
356	356	Act;
357	357	(m) a respiratory care practitioner
358	358	licensed pursuant to the provisions of the Respiratory Care
359	359	Act;
360	360	(n) a speech-language pathologist or
361	361	audiologist licensed pursuant to the Speech-Language Pathology,
362	362	Audiology and Hearing Aid Dispensing Practices Act;
363	363	(o) a professional clinical mental
364	364	health counselor, marriage and family therapist or professional
365	365	art therapist licensed pursuant to the provisions of the
366	366	Counseling and Therapy Practice Act who has obtained a master's
367	367	degree or a doctorate;
368	368	(p) an independent social worker
369	369	licensed pursuant to the provisions of the Social Work Practice
370	370	Act; and
371	371	(q) a clinical laboratory that is
372	372	accredited pursuant to 42 U.S.C. Section 263a but that is not a
373	373	laboratory in a physician's office or in a hospital defined
374	374	pursuant to 42 U.S.C. Section 1395x;
375	375	[(8)] (7) "managed care health plan" means a
376	376	health care plan offered by a managed care organization that
377	377	provides for the delivery of comprehensive basic health care
378	378	services and medically necessary services to individuals
379	379	enrolled in the plan other than those services provided to
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408	408	medicare patients pursuant to Title 18 of the federal Social
409	409	Security Act [or to medicaid patients pursuant to Title 19 or
410	410	Title 21 of the federal Social Security Act ];
411	411	[(9)] (8) "managed care organization" means a
412	412	person that provides for the delivery of comprehensive basic
413	413	health care services and medically necessary services to
414	414	individuals enrolled in a plan through its own employed health
415	415	care providers or by contracting with selected or participating
416	416	health care providers. "Managed care organization" includes
417	417	only those persons that provide comprehensive basic health care
418	418	services to enrollees on a contract basis, including the
419	419	following:
420	420	(a) health maintenance organizations;
421	421	(b) preferred provider organizations;
422	422	(c) individual practice associations;
423	423	(d) competitive medical plans;
424	424	(e) exclusive provider organizations;
425	425	(f) integrated delivery systems;
426	426	(g) independent physician-provider
427	427	organizations;
428	428	(h) physician hospital-provider
429	429	organizations; and
430	430	(i) managed care services organizations;
431	431	and
432	432	[(10)] (9) "medicare part C services" means
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461	461	services performed pursuant to a contract with a managed health
462	462	care provider for medicare patients pursuant to Title 18 of the
463	463	federal Social Security Act."
464	464	SECTION 2. A new section of the Gross Receipts and
465	465	Compensating Tax Act, Section 7-9-93.1 NMSA 1978, is enacted to
466	466	read:
467	467	"7-9-93.1. [NEW MATERIAL ] DEDUCTION--GROSS RECEIPTS--
468	468	CERTAIN RECEIPTS FOR SERVICES PROVIDED BY HEALTH CARE
469	469	PRACTITIONER OR ASSOCIATION OF HEALTH CARE PRACTITIONERS EXCEPT
470	470	FOR MEDICAID PATIENTS--MEDICAL EQUIPMENT, SUPPLIES AND DRUGS.--
471	471	A. Except for those receipts that may be deducted
472	472	from gross receipts pursuant to Section 7-9-93 NMSA 1978,
473	473	receipts of a health care practitioner or an association of
474	474	health care practitioners for health care services, other than
475	475	services provided for medicaid patients pursuant to Title 19 or
476	476	Title 21 of the federal Social Security Act, performed by a
477	477	health care practitioner may be deducted from gross receipts if
478	478	the services are within the scope of practice of the health
479	479	care practitioner providing the service.
480	480	B. Receipts from the sale of medical equipment and
481	481	medical supplies to a health care practitioner or an
482	482	association of health care practitioners may be deducted from
483	483	gross receipts if the medical equipment and medical supplies
484	484	are regularly used within the practice of the health care
485	485	practitioner or association of health care practitioners.
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514	514	C. Receipts from the sale of medical drugs to a
515	515	health care practitioner or an association of health care
516	516	practitioners may be deducted from gross receipts if the
517	517	medical drugs are regularly used for the treatment of patients
518	518	within the practice of the health care practitioner or
519	519	association of health care practitioners.
520	520	D. The deductions provided by this section shall be
521	521	applied only to gross receipts remaining after all other
522	522	allowable deductions available under the Gross Receipts and
523	523	Compensating Tax Act have been taken.
524	524	E. A taxpayer allowed a deduction pursuant to this
525	525	section shall report the amount of the deduction separately in
526	526	a manner required by the department.
527	527	F. The deduction provided by this section shall be
528	528	included in the tax expenditure budget pursuant to Section
529	529	7-1-84 NMSA 1978, including the number of taxpayers that
530	530	claimed each deduction, the aggregate amount of deductions
531	531	claimed and any other information necessary to evaluate the
532	532	cost and effectiveness of the deductions.
533	533	G. As used in this section:
534	534	(1) "association of health care practitioners"
535	535	means a corporation, unincorporated business entity or other
536	536	legal entity organized by, owned by or employing one or more
537	537	health care practitioners; provided that the entity is not:
538	538	(a) an organization granted exemption
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567	567	from the federal income tax by the United States commissioner
568	568	of internal revenue as organizations described in Section
569	569	501(c)(3) of the United States Internal Revenue Code of 1986,
570	570	as that section may be amended or renumbered; or
571	571	(b) a health maintenance organization or
572	572	a hospital, hospice, nursing home or an entity that is solely
573	573	an outpatient facility or intermediate care facility licensed
574	574	by the health care authority;
575	575	(2) "copayment" means a fixed dollar amount
576	576	that a health care insurer or managed care health plan requires
577	577	an insured or enrollee to pay upon incurring an expense for
578	578	receiving medical services;
579	579	(3) "deductible" means the amount of covered
580	580	charges an insured or enrollee is required to pay in a plan
581	581	year for commercial contract services before the insured's
582	582	health insurance plan or enrollee's managed care health plan
583	583	begins to pay for applicable covered charges;
584	584	(4) "health care insurer" means a person that:
585	585	(a) has a valid certificate of authority
586	586	in good standing pursuant to the New Mexico Insurance Code to
587	587	act as an insurer, health maintenance organization or nonprofit
588	588	health care plan or prepaid dental plan; and
589	589	(b) contracts to reimburse licensed
590	590	health care practitioners for providing basic health services
591	591	to enrollees at negotiated fee rates;
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620	620	(5) "health care practitioner" means:
621	621	(a) a chiropractic physician licensed
622	622	pursuant to the provisions of the Chiropractic Physician
623	623	Practice Act;
624	624	(b) a dentist or dental hygienist
625	625	licensed pursuant to the Dental Health Care Act;
626	626	(c) a doctor of oriental medicine
627	627	licensed pursuant to the provisions of the Acupuncture and
628	628	Oriental Medicine Practice Act;
629	629	(d) an optometrist licensed pursuant to
630	630	the provisions of the Optometry Act;
631	631	(e) an osteopathic physician licensed
632	632	pursuant to the provisions of the Medical Practice Act;
633	633	(f) a physical therapist licensed
634	634	pursuant to the provisions of the Physical Therapy Act;
635	635	(g) a physician or physician assistant
636	636	licensed pursuant to the provisions of the Medical Practice
637	637	Act;
638	638	(h) a podiatric physician licensed
639	639	pursuant to the provisions of the Podiatry Act;
640	640	(i) a psychologist licensed pursuant to
641	641	the provisions of the Professional Psychologist Act;
642	642	(j) a registered lay midwife registered
643	643	by the department of health;
644	644	(k) a registered nurse or licensed
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673	673	practical nurse licensed pursuant to the provisions of the
674	674	Nursing Practice Act;
675	675	(l) a registered occupational therapist
676	676	licensed pursuant to the provisions of the Occupational Therapy
677	677	Act;
678	678	(m) a respiratory care practitioner
679	679	licensed pursuant to the provisions of the Respiratory Care
680	680	Act;
681	681	(n) a speech-language pathologist or
682	682	audiologist licensed pursuant to the Speech-Language Pathology,
683	683	Audiology and Hearing Aid Dispensing Practices Act;
684	684	(o) a professional clinical mental
685	685	health counselor, marriage and family therapist or professional
686	686	art therapist licensed pursuant to the provisions of the
687	687	Counseling and Therapy Practice Act who has obtained a master's
688	688	degree or a doctorate;
689	689	(p) an independent social worker
690	690	licensed pursuant to the provisions of the Social Work Practice
691	691	Act;
692	692	(q) a clinical laboratory that is
693	693	accredited pursuant to 42 U.S.C. Section 263a but that is not a
694	694	laboratory in a physician's office or in a hospital defined
695	695	pursuant to 42 U.S.C. Section 1395x; and
696	696	(r) a naturopathic doctor licensed
697	697	pursuant to the provisions of the Naturopathic Doctors'
698	698	.230475.1
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726	726	Practice Act;
727	727	(6) "managed care health plan" means a health
728	728	care plan offered by a managed care organization that provides
729	729	for the delivery of comprehensive basic health care services
730	730	and medically necessary services to individuals enrolled in the
731	731	plan other than those services provided to medicare patients
732	732	pursuant to Title 18 of the federal Social Security Act or to
733	733	medicaid patients pursuant to Title 19 or Title 21 of the
734	734	federal Social Security Act;
735	735	(7) "managed care organization" means a person
736	736	that provides for the delivery of comprehensive basic health
737	737	care services and medically necessary services to individuals
738	738	enrolled in a plan through its own employed health care
739	739	providers or by contracting with selected or participating
740	740	health care providers. "Managed care organization" includes
741	741	only those persons that provide comprehensive basic health care
742	742	services to enrollees on a contract basis, including the
743	743	following:
744	744	(a) health maintenance organizations;
745	745	(b) preferred provider organizations;
746	746	(c) individual practice associations;
747	747	(d) competitive medical plans;
748	748	(e) exclusive provider organizations;
749	749	(f) integrated delivery systems;
750	750	(g) independent physician-provider
751	751	.230475.1
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779	779	organizations;
780	780	(h) physician hospital-provider
781	781	organizations; and
782	782	(i) managed care services organizations;
783	783	(8) "medical equipment and supplies" means
784	784	items or devices that are primarily and customarily used to
785	785	serve a medical purpose for a course of medical treatment; and
786	786	(9) "medicare part C services" means services
787	787	performed pursuant to a contract with a managed health care
788	788	provider for medicare patients pursuant to Title 18 of the
789	789	federal Social Security Act."
790	790	SECTION 3. A new section of the Public Assistance Act is
791	791	enacted to read:
792	792	"[NEW MATERIAL] REIMBURSEMENT FOR GROSS RECEIPTS
793	793	TAXES.--When a health care provider receives medicaid
794	794	reimbursement for providing health care services to a
795	795	recipient, the health care provider shall be reimbursed for all
796	796	applicable gross receipts taxes that the health care provider
797	797	is required to pay. As used in this section, "medicaid" means
798	798	the federal-state program administered by the authority
799	799	pursuant to Title 19 or Title 21 of the federal Social Security
800	800	Act."
801	801	SECTION 4. EFFECTIVE DATE.--The effective date of the
802	802	provisions of this act is July 1, 2025.
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