New Mexico 2025 Regular Session

New Mexico Senate Bill SB295 Compare Versions

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

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28	28	SENATE BILL 295
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	Jeff Steinborn and Carrie Hamblen and William E. Sharer
48	48	and Craig W. Brandt
49	49	AN ACT
50	50	RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION
51	51	FOR THE SALE OF MEDICAL EQUIPMENT, SUPPLIES AND DRUGS;
52	52	PROVIDING A GROSS RECEIPTS TAX DEDUCTION TO RECEIPTS FOR
53	53	CERTAIN HEALTH CARE SERVICES, EXCEPT FOR THOSE FOR MEDICAID
54	54	PATIENTS; REMOVING THE SUNSET DATE OF A GROSS RECEIPTS TAX
55	55	DEDUCTION FOR RECEIPTS FROM COPAYMENTS OR DEDUCTIBLES PAID BY
56	56	AN INSURED OR ENROLLEE TO A HEALTH CARE PRACTITIONER OR AN
57	57	ASSOCIATION OF HEALTH CARE PRACTITIONERS; EXTENDING A GROSS
58	58	RECEIPTS TAX DEDUCTION TO RECEIPTS FROM A PATIENT PAID TO A
59	59	HEALTH CARE PRACTITIONER OR AN ASSOCIATION OF HEALTH CARE
60	60	PRACTITIONERS FOR HEALTH CARE SERVICES THAT ARE NOT PERFORMED
61	61	PURSUANT TO A CONTRACT WITH A MANAGED CARE ORGANIZATION OR
62	62	HEALTH CARE INSURER; PROVIDING THAT A HEALTH CARE PROVIDER
63	63	RECEIVING MEDICAID REIMBURSEMENT SHALL BE REIMBURSED FOR ALL
64	64	APPLICABLE GROSS RECEIPTS TAXES THAT THE PROVIDER IS REQUIRED
65	65	.230116.4 underscored material = new
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92	92	TO PAY.
93	93	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
94	94	SECTION 1. Section 7-9-93 NMSA 1978 (being Laws 2004,
95	95	Chapter 116, Section 6, as amended) is amended to read:
96	96	"7-9-93. DEDUCTION--GROSS RECEIPTS--CERTAIN RECEIPTS FOR
97	97	SERVICES PROVIDED BY HEALTH CARE PRACTITIONER OR ASSOCIATION OF
98	98	HEALTH CARE PRACTITIONERS.--
99	99	A. Receipts of a health care practitioner or an
100	100	association of health care practitioners for commercial
101	101	contract services or medicare part C services paid by a managed
102	102	care organization or health care insurer may be deducted from
103	103	gross receipts if the services are within the scope of practice
104	104	of the health care practitioner providing the service.
105	105	[Receipts from fee-for-service payments by a health care
106	106	insurer may not be deducted from gross receipts. ]
107	107	B. [Prior to July 1, 2028 ] Receipts from a
108	108	copayment or deductible paid by an insured or enrollee to a
109	109	health care practitioner or an association of health care
110	110	practitioners for commercial contract services pursuant to the
111	111	terms of the insured's health insurance plan or enrollee's
112	112	managed care health plan may be deducted from gross receipts if
113	113	the services are within the scope of practice of the health
114	114	care practitioner providing the service.
115	115	C. Receipts from a patient to a health care
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144	144	practitioner or an association of health care practitioners for
145	145	health care services that are not performed pursuant to a
146	146	contract with a managed care organization or health care
147	147	insurer may be deducted from gross receipts if the services are
148	148	within the scope of practice of the health care practitioner
149	149	providing the service.
150	150	[C.] D. The deductions provided by this section
151	151	shall be applied only to gross receipts remaining after all
152	152	other allowable deductions available under the Gross Receipts
153	153	and Compensating Tax Act have been taken, except for deductions
154	154	pursuant to Section 7-9-93.1 NMSA 1978.
155	155	[D.] E. A taxpayer allowed a deduction pursuant to
156	156	this section shall report the amount of the deduction
157	157	separately in a manner required by the department.
158	158	[E. The department shall compile an annual report
159	159	on the deductions provided by this section that shall include
160	160	the number of taxpayers that claimed the deductions, the
161	161	aggregate amount of deductions claimed and any other
162	162	information necessary to evaluate the effectiveness of the
163	163	deductions. The department shall present the report to the
164	164	revenue stabilization and tax policy committee and the
165	165	legislative finance committee with an analysis of the cost of
166	166	the deductions.]
167	167	F. The deductions provided by this section shall be
168	168	included in the tax expenditure budget pursuant to Section
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197	197	7-1-84 NMSA 1978, including the number of taxpayers that
198	198	claimed each deduction, the aggregate amount of deductions
199	199	claimed and any other information necessary to evaluate the
200	200	cost and effectiveness of the deductions.
201	201	[F.] G. As used in this section:
202	202	(1) "association of health care practitioners"
203	203	means a corporation, an unincorporated business entity or other
204	204	legal entity organized by, owned by or employing one or more
205	205	health care practitioners; provided that the entity is not:
206	206	(a) an organization granted exemption
207	207	from the federal income tax by the United States commissioner
208	208	of internal revenue as organizations described in Section
209	209	501(c)(3) of the United States Internal Revenue Code of 1986,
210	210	as that section may be amended or renumbered; or
211	211	(b) a health maintenance organization or
212	212	a hospital, hospice, nursing home or an entity that is solely
213	213	an outpatient facility or intermediate care facility licensed
214	214	[pursuant to the Public Health Act ] by the health care
215	215	authority;
216	216	(2) "commercial contract services" means
217	217	health care services performed by a health care practitioner
218	218	pursuant to a contract with a managed care organization or
219	219	health care insurer other than those health care services
220	220	provided for medicare patients pursuant to Title 18 of the
221	221	federal Social Security Act or for medicaid patients pursuant
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250	250	to Title 19 or Title 21 of the federal Social Security Act;
251	251	(3) "copayment" means a fixed dollar amount
252	252	that a health care insurer or managed care health plan requires
253	253	an insured or enrollee to pay upon incurring an expense for
254	254	receiving medical services;
255	255	(4) "deductible" means the amount of covered
256	256	charges an insured or enrollee is required to pay in a plan
257	257	year for commercial contract services before the insured's
258	258	health insurance plan or enrollee's managed care health plan
259	259	begins to pay for applicable covered charges;
260	260	[(5) "fee-for-service" means payment for
261	261	health care services by a health care insurer for covered
262	262	charges under an indemnity insurance plan;
263	263	(6)] (5) "health care insurer" means a person
264	264	that:
265	265	(a) has a valid certificate of authority
266	266	in good standing pursuant to the New Mexico Insurance Code to
267	267	act as an insurer, health maintenance organization or nonprofit
268	268	health care plan or prepaid dental plan; and
269	269	(b) contracts to reimburse licensed
270	270	health care practitioners for providing basic health services
271	271	to enrollees at negotiated fee rates;
272	272	[(7)] (6) "health care practitioner" means:
273	273	(a) a chiropractic physician licensed
274	274	pursuant to the provisions of the Chiropractic Physician
275	275	.230116.4
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303	303	Practice Act;
304	304	(b) a dentist or dental hygienist
305	305	licensed pursuant to the Dental Health Care Act;
306	306	(c) a doctor of oriental medicine
307	307	licensed pursuant to the provisions of the Acupuncture and
308	308	Oriental Medicine Practice Act;
309	309	(d) an optometrist licensed pursuant to
310	310	the provisions of the Optometry Act;
311	311	(e) an osteopathic physician licensed
312	312	pursuant to the provisions of the Medical Practice Act;
313	313	(f) a physical therapist licensed
314	314	pursuant to the provisions of the Physical Therapy Act;
315	315	(g) a physician or physician assistant
316	316	licensed pursuant to the provisions of the Medical Practice
317	317	Act;
318	318	(h) a podiatric physician licensed
319	319	pursuant to the provisions of the Podiatry Act;
320	320	(i) a psychologist licensed pursuant to
321	321	the provisions of the Professional Psychologist Act;
322	322	(j) a registered lay midwife registered
323	323	by the department of health;
324	324	(k) a registered nurse or licensed
325	325	practical nurse licensed pursuant to the provisions of the
326	326	Nursing Practice Act;
327	327	(l) a registered occupational therapist
328	328	.230116.4
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356	356	licensed pursuant to the provisions of the Occupational Therapy
357	357	Act;
358	358	(m) a respiratory care practitioner
359	359	licensed pursuant to the provisions of the Respiratory Care
360	360	Act;
361	361	(n) a speech-language pathologist or
362	362	audiologist licensed pursuant to the Speech-Language Pathology,
363	363	Audiology and Hearing Aid Dispensing Practices Act;
364	364	(o) a professional clinical mental
365	365	health counselor, marriage and family therapist or professional
366	366	art therapist licensed pursuant to the provisions of the
367	367	Counseling and Therapy Practice Act who has obtained a master's
368	368	degree or a doctorate;
369	369	(p) an independent social worker
370	370	licensed pursuant to the provisions of the Social Work Practice
371	371	Act; and
372	372	(q) a clinical laboratory that is
373	373	accredited pursuant to 42 U.S.C. Section 263a but that is not a
374	374	laboratory in a physician's office or in a hospital defined
375	375	pursuant to 42 U.S.C. Section 1395x;
376	376	[(8)] (7) "managed care health plan" means a
377	377	health care plan offered by a managed care organization that
378	378	provides for the delivery of comprehensive basic health care
379	379	services and medically necessary services to individuals
380	380	enrolled in the plan other than those services provided to
381	381	.230116.4
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409	409	medicare patients pursuant to Title 18 of the federal Social
410	410	Security Act [or to medicaid patients pursuant to Title 19 or
411	411	Title 21 of the federal Social Security Act ];
412	412	[(9)] (8) "managed care organization" means a
413	413	person that provides for the delivery of comprehensive basic
414	414	health care services and medically necessary services to
415	415	individuals enrolled in a plan through its own employed health
416	416	care providers or by contracting with selected or participating
417	417	health care providers. "Managed care organization" includes
418	418	only those persons that provide comprehensive basic health care
419	419	services to enrollees on a contract basis, including the
420	420	following:
421	421	(a) health maintenance organizations;
422	422	(b) preferred provider organizations;
423	423	(c) individual practice associations;
424	424	(d) competitive medical plans;
425	425	(e) exclusive provider organizations;
426	426	(f) integrated delivery systems;
427	427	(g) independent physician-provider
428	428	organizations;
429	429	(h) physician hospital-provider
430	430	organizations; and
431	431	(i) managed care services organizations;
432	432	and
433	433	[(10)] (9) "medicare part C services" means
434	434	.230116.4
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462	462	services performed pursuant to a contract with a managed health
463	463	care provider for medicare patients pursuant to Title 18 of the
464	464	federal Social Security Act."
465	465	SECTION 2. A new section of the Gross Receipts and
466	466	Compensating Tax Act, Section 7-9-93.1 NMSA 1978, is enacted to
467	467	read:
468	468	"7-9-93.1. [NEW MATERIAL ] DEDUCTION--GROSS RECEIPTS--
469	469	CERTAIN RECEIPTS FOR SERVICES PROVIDED BY HEALTH CARE
470	470	PRACTITIONER OR ASSOCIATION OF HEALTH CARE PRACTITIONERS EXCEPT
471	471	FOR MEDICAID PATIENTS--MEDICAL EQUIPMENT, SUPPLIES AND DRUGS.--
472	472	A. Except for those receipts that may be deducted
473	473	from gross receipts pursuant to Section 7-9-93 NMSA 1978,
474	474	receipts of a health care practitioner or an association of
475	475	health care practitioners for health care services, other than
476	476	services provided for medicaid patients pursuant to Title 19 or
477	477	Title 21 of the federal Social Security Act, performed by a
478	478	health care practitioner may be deducted from gross receipts if
479	479	the services are within the scope of practice of the health
480	480	care practitioner providing the service.
481	481	B. Receipts from the sale of medical equipment and
482	482	medical supplies to a health care practitioner or an
483	483	association of health care practitioners may be deducted from
484	484	gross receipts if the medical equipment and medical supplies
485	485	are regularly used within the practice of the health care
486	486	practitioner or association of health care practitioners.
487	487	.230116.4
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515	515	C. Receipts from the sale of medical drugs to a
516	516	health care practitioner or an association of health care
517	517	practitioners may be deducted from gross receipts if the
518	518	medical drugs are regularly used for the treatment of patients
519	519	within the practice of the health care practitioner or
520	520	association of health care practitioners.
521	521	D. The deductions provided by this section shall be
522	522	applied only to gross receipts remaining after all other
523	523	allowable deductions available under the Gross Receipts and
524	524	Compensating Tax Act have been taken.
525	525	E. A taxpayer allowed a deduction pursuant to this
526	526	section shall report the amount of the deduction separately in
527	527	a manner required by the department.
528	528	F. The deduction provided by this section shall be
529	529	included in the tax expenditure budget pursuant to Section
530	530	7-1-84 NMSA 1978, including the number of taxpayers that
531	531	claimed each deduction, the aggregate amount of deductions
532	532	claimed and any other information necessary to evaluate the
533	533	cost and effectiveness of the deductions.
534	534	G. As used in this section:
535	535	(1) "association of health care practitioners"
536	536	means a corporation, unincorporated business entity or other
537	537	legal entity organized by, owned by or employing one or more
538	538	health care practitioners; provided that the entity is not:
539	539	(a) an organization granted exemption
540	540	.230116.4
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568	568	from the federal income tax by the United States commissioner
569	569	of internal revenue as organizations described in Section
570	570	501(c)(3) of the United States Internal Revenue Code of 1986,
571	571	as that section may be amended or renumbered; or
572	572	(b) a health maintenance organization or
573	573	a hospital, hospice, nursing home or an entity that is solely
574	574	an outpatient facility or intermediate care facility licensed
575	575	by the health care authority;
576	576	(2) "copayment" means a fixed dollar amount
577	577	that a health care insurer or managed care health plan requires
578	578	an insured or enrollee to pay upon incurring an expense for
579	579	receiving medical services;
580	580	(3) "deductible" means the amount of covered
581	581	charges an insured or enrollee is required to pay in a plan
582	582	year for commercial contract services before the insured's
583	583	health insurance plan or enrollee's managed care health plan
584	584	begins to pay for applicable covered charges;
585	585	(4) "health care insurer" means a person that:
586	586	(a) has a valid certificate of authority
587	587	in good standing pursuant to the New Mexico Insurance Code to
588	588	act as an insurer, health maintenance organization or nonprofit
589	589	health care plan or prepaid dental plan; and
590	590	(b) contracts to reimburse licensed
591	591	health care practitioners for providing basic health services
592	592	to enrollees at negotiated fee rates;
593	593	.230116.4
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621	621	(5) "health care practitioner" means:
622	622	(a) a chiropractic physician licensed
623	623	pursuant to the provisions of the Chiropractic Physician
624	624	Practice Act;
625	625	(b) a dentist or dental hygienist
626	626	licensed pursuant to the Dental Health Care Act;
627	627	(c) a doctor of oriental medicine
628	628	licensed pursuant to the provisions of the Acupuncture and
629	629	Oriental Medicine Practice Act;
630	630	(d) an optometrist licensed pursuant to
631	631	the provisions of the Optometry Act;
632	632	(e) an osteopathic physician licensed
633	633	pursuant to the provisions of the Medical Practice Act;
634	634	(f) a physical therapist licensed
635	635	pursuant to the provisions of the Physical Therapy Act;
636	636	(g) a physician or physician assistant
637	637	licensed pursuant to the provisions of the Medical Practice
638	638	Act;
639	639	(h) a podiatric physician licensed
640	640	pursuant to the provisions of the Podiatry Act;
641	641	(i) a psychologist licensed pursuant to
642	642	the provisions of the Professional Psychologist Act;
643	643	(j) a registered lay midwife registered
644	644	by the department of health;
645	645	(k) a registered nurse or licensed
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674	674	practical nurse licensed pursuant to the provisions of the
675	675	Nursing Practice Act;
676	676	(l) a registered occupational therapist
677	677	licensed pursuant to the provisions of the Occupational Therapy
678	678	Act;
679	679	(m) a respiratory care practitioner
680	680	licensed pursuant to the provisions of the Respiratory Care
681	681	Act;
682	682	(n) a speech-language pathologist or
683	683	audiologist licensed pursuant to the Speech-Language Pathology,
684	684	Audiology and Hearing Aid Dispensing Practices Act;
685	685	(o) a professional clinical mental
686	686	health counselor, marriage and family therapist or professional
687	687	art therapist licensed pursuant to the provisions of the
688	688	Counseling and Therapy Practice Act who has obtained a master's
689	689	degree or a doctorate;
690	690	(p) an independent social worker
691	691	licensed pursuant to the provisions of the Social Work Practice
692	692	Act;
693	693	(q) a clinical laboratory that is
694	694	accredited pursuant to 42 U.S.C. Section 263a but that is not a
695	695	laboratory in a physician's office or in a hospital defined
696	696	pursuant to 42 U.S.C. Section 1395x; and
697	697	(r) a naturopathic doctor licensed
698	698	pursuant to the provisions of the Naturopathic Doctors'
699	699	.230116.4
700	700	- 13 - underscored material = new
701	701	[bracketed material] = delete
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727	727	Practice Act;
728	728	(6) "managed care health plan" means a health
729	729	care plan offered by a managed care organization that provides
730	730	for the delivery of comprehensive basic health care services
731	731	and medically necessary services to individuals enrolled in the
732	732	plan other than those services provided to medicare patients
733	733	pursuant to Title 18 of the federal Social Security Act or to
734	734	medicaid patients pursuant to Title 19 or Title 21 of the
735	735	federal Social Security Act;
736	736	(7) "managed care organization" means a person
737	737	that provides for the delivery of comprehensive basic health
738	738	care services and medically necessary services to individuals
739	739	enrolled in a plan through its own employed health care
740	740	providers or by contracting with selected or participating
741	741	health care providers. "Managed care organization" includes
742	742	only those persons that provide comprehensive basic health care
743	743	services to enrollees on a contract basis, including the
744	744	following:
745	745	(a) health maintenance organizations;
746	746	(b) preferred provider organizations;
747	747	(c) individual practice associations;
748	748	(d) competitive medical plans;
749	749	(e) exclusive provider organizations;
750	750	(f) integrated delivery systems;
751	751	(g) independent physician-provider
752	752	.230116.4
753	753	- 14 - underscored material = new
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780	780	organizations;
781	781	(h) physician hospital-provider
782	782	organizations; and
783	783	(i) managed care services organizations;
784	784	(8) "medical equipment and supplies" means
785	785	items or devices that are primarily and customarily used to
786	786	serve a medical purpose for a course of medical treatment; and
787	787	(9) "medicare part C services" means services
788	788	performed pursuant to a contract with a managed health care
789	789	provider for medicare patients pursuant to Title 18 of the
790	790	federal Social Security Act."
791	791	SECTION 3. A new section of the Public Assistance Act is
792	792	enacted to read:
793	793	"[NEW MATERIAL] REIMBURSEMENT FOR GROSS RECEIPTS
794	794	TAXES.--When a health care provider receives medicaid
795	795	reimbursement for providing health care services to a
796	796	recipient, the health care provider shall be reimbursed for all
797	797	applicable gross receipts taxes that the health care provider
798	798	is required to pay. As used in this section, "medicaid" means
799	799	the federal-state program administered by the authority
800	800	pursuant to Title 19 or Title 21 of the federal Social Security
801	801	Act."
802	802	SECTION 4. EFFECTIVE DATE.--The effective date of the
803	803	provisions of this act is July 1, 2025.
804	804	- 15 -
805	805	.230116.4