Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Sen. Sedillo Lopez/Rep. Torres-Velásquez
LAST UPDATED 01/31/2025
ORIGINAL DATE 01/29/2025
SHORT TITLE
Out-of-State Telehealth Providers
BILL
NUMBER Senate Bill 12
ANALYST Chilton
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected
NMMB ($55.0) ($55.0) ( $55.0) ($55.0) ($55.0) Recurring General Fund
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to Senate Bill 46
Sources of Information
LFC Files
Agency Analysis Received From
University of New Mexico Health Sciences Center (UNM-HSC) New Mexico Medical Board (NMMB) Health Care Authority (HCA)
SUMMARY
Synopsis Senate Bill 12
Senate Bill 12 (SB12) modifies the New Mexico Telehealth Act (Section 25-23 NMSA 1978) to
specify that medical providers not licensed in New Mexico are permitted to provide telehealth
consultations to New Mexico residents for second opinions (the first opinion would have to be
provided by a New Mexico-licensed practitioner) and for consultations that relate to the
possibility that the patient would travel to the jurisdiction where the practitioner is licensed for
further treatment or services.
Aside from defining “consultation for prospective treatment” as indicated above, changes to the
definition of “health care provider” include allowing for certified or registered (in addition to
licensed) providers to give telehealth consultations and the inclusion in a long list of types of
practitioners able to provide telehealth services.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
Senate Bill 12 – Page 2
FISCAL IMPLICATIONS
There is no appropriation in Senate Bill 12.
The Medical Board (NMMB) estimates the bill would result in an annual $55 thousand decrease
in licensing fees from out-of-state providers who now would not seek licenses to provide
telehealth services in New Mexico.
The Health Care Authority (HCA) anticipates little change in Medicaid costs or state health
benefits, stating that “Any increase in utilization is likely marginal and offset by potential
savings from timely care or avoided higher-cost interventions.”
SIGNIFICANT ISSUES
New Mexico has a documented healthcare provider shortage, which might lead to some residents
seeking healthcare from out of state. Existing language in the Telehealth Act “encourages”
healthcare insurers and the state’s Medicaid program to pay for existing telehealth services.
HCA notes, “SB12 seeks to address access to health care in New Mexico by leveraging
telehealth services. Allowing out-of-state providers to offer second opinions and consultations
can increase access to specialists for patients in remote or underserved areas.”
However, HCA notes that there may be issues with the bill.
SB12 introduces greater flexibility by allowing out-of-state providers to deliver specific
services without a New Mexico telehealth license. While this could enhance access, it
may raise concerns about regulatory oversight, quality assurance, and accountability for
out-of-state providers. For telehealth to be effective, patients must have access to reliable
technology and internet connectivity. The bill does not address these potential barriers,
which may limit its impact in rural or lower-income areas lacking adequate infrastructure.
HCA also notes:
Certified peer support worker services are a Medicaid paid service; however, certified
peer support workers are not individually enrolled in Medicaid as a provider type.
Services are billed through the behavioral health agency in which they are employed.
Each individual would have to obtain a business license to enroll as an independent
provider. The current Medicaid and Managed Care Organization enrollment process does
not have the structure in place to enroll certified peer support workers as a provider type.
This may result in an additional administrative burden for certified peer support workers
both in state and out of state.
NMMB and the University of New Mexico Health Sciences Center (UNM-HSC) concur in
indicating concerns about the quality of unlicensed providers’ telehealth services. From UNM-
HSC:
The bill does not require that the provider of the second opinion be of the same specialty
as the first opinion. Therefore, a physical therapist or chiropractor can give the second
opinion for back pain that was initially diagnosed by a physician.
The lack of a NM license for practitioners issuing a second opinion means that there is no
way to guarantee that the of the out-of-state practitioners meet New Mexico’s training
and continuous learning requirements. For example, some states are license individuals
who have not trained in the United States or have only one year of residency training.
Senate Bill 12 – Page 3
UNM-HSC also points out two advantages that would be delivered by the provisions of this bill:
Opportunities for patients to assess the benefit that might accrue from traveling to a
specialist out of New Mexico, and
Allowing Medicaid-authorized providers to treat patients out of state via telehealth may
improve access for those patients.
PERFORMANCE IMPLICATIONS
NMMB states it would “lose quality control with the inability to protect patients from
incompetent, fraudulent or unethical medical practices” and would lack prosecutorial authority to
respond to patient complaints against unlicensed telehealth healthcare practitioners from other
states.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
SB12 relates to Senate Bill 46, which provides for New Mexico to join the interstate health
providers compact.
TECHNICAL ISSUES
The bill does not specify whether second opinions and consultations regarding possible travel to
the consultant’s state would occur only once, or whether the consultant, unlicensed or certified in
New Mexico, could offer continuing services under the revised law.
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