SB 246 — HEALTH CARE QUALITY SURCHARGE ACT
Last action — Signed
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✓Introduced
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✓In Committee
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✓Passed Senate
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✓Passed House
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 11, 2019. Enacted.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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Enacted
Current position in the legislative process.
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1 sponsor
1 primary, 0 co-sponsors signed on.
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Cleared a recorded vote
Passed 1 recorded vote so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Bill Text
What changed in the latest version
410 added · 560 removedPlain-language change summary
The recent changes to Bill SB 246 establish the "Health Care Quality Surcharge Act," which introduces a temporary surcharge on certain healthcare facilities. The revenue generated from this surcharge is designated to help increase Medicaid reimbursement rates and support improvements in facility quality for skilled nursing and intermediate care facilities. This amendment is important because it aims to enhance funding for Medicaid services, potentially leading to better care and resources for vulnerable populations relying on these facilities.
SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR SENATE BILL 246 54TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2019 4 6 8 10 AN ACT RELATING TO STATE REVENUE;
PROVIDING THAT REVENUE FROM THE SURCHARGE 14 SHALL BE USED TO REIMBURSE A PORTION OF THE SURCHARGE AS A MEDICAID-ALLOWABLE COST AND TO INCREASE MEDICAID PROVIDER REIMBURSEMENT RATES;
e t 17 MAKING AN APPROPRIATION.
w l n d 18 = = 19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
a l i a e r 20 SECTION 1.
[NEW MATERIAL ] SHORT TITLE.--Sections 1 a t m m 21 through 8 of this act may be referred to as the "Health Care d r e 22 Quality Surcharge Act".
c e s k 23 SECTION 2.
[NEW MATERIAL] PURPOSE.--The purpose of the e a n b 24 Health Care Quality Surcharge Act is to enhance federal u [ financial participation in medicaid to increase medicaid .211666.4 SPAC/SB 246 provider reimbursement rates and support facility quality improvement efforts in skilled nursing facilities, intermediate care facilities and intermediate care facilities for individuals with intellectual disabilities.
[NEW MATERIAL ] DEFINITIONS.--As used in the Health Care Quality Surcharge Act:
"health care facility" means a skilled nursing SPAC/SB 246 Page 1 facility, intermediate care facility or intermediate care facility for individuals with intellectual disabilities;
e e 17 D.
"intermediate care facility for individuals with e e n d 18 intellectual disabilities" means a facility licensed by the = = l ] 19 department of health to provide food, shelter, health or a l r i 20 rehabilitative and active treatment for individuals with t e a t intellectual disabilities or persons with related conditions;
m m 21 e d E.
"medicaid" means the medical assistance program r e 22 c e r c 23 established pursuant to Title 19 of the federal Social Security e a n b 24 Act and regulations promulgated pursuant to that act;
u [ F.
"medicare" means coverage provided pursuant to .211666.4 - 2 - SPAC/SB 246 part A or part B of Title 18 of the federal Social Security Act, as amended;
"medicare part A" means insurance provided through medicare for inpatient hospital, home health, skilled SPAC/SB 246 Page 2 nursing facility and hospice care;
A non-medicare bed day excludes any day on e e 17 which a resident is not in the facility or the facility is paid e e n d 18 to hold the bed while the resident is on leave;
= = l ] 19 K.
"resident day" means a calendar day of care a l r i 20 provided to a resident in a health care facility, including the t e a t day of admission and not including the day of discharge;
m m 21 e d provided that admission and discharge occurring on the same day r e 22 c e r c 23 shall constitute one resident day;
e a n b 24 L.
"skilled nursing facility" means a facility with u [ greater than sixty beds and is licensed by the department of .211666.4 - 3 - SPAC/SB 246 health to provide skilled nursing services;
[NEW MATERIAL ] HEALTH CARE QUALITY SURCHARGE--SURCHARGE--RATE RATE CALCULATION--DATE PAYMENT DUE.-- SPAC/SB 246 Page 3 A.
No later than sixty days following the effective date of the Health Care Quality Surcharge Act and by June 1 of each year thereafter, the human services department shall calculate the rate of the surcharge to be paid by each health care facility during the subsequent fiscal year and shall e e 17 notify the taxation and revenue department and each such health e e n d 18 care facility of the applicable rates.
In calculating the = = l ] 19 rates, the human services department shall:
a l r i 20 (1) set a uniform rate per non-medicare day in t e a t health care facilities not to exceed the maximum allowed by m m 21 e d federal law governing the approval of the state medicaid plan r e 22 c e r c 23 or any waiver from that plan;
e a n b 24 (2) structure the rates for each skilled u [ nursing facility and intermediate care facility so that the .211666.4 - 4 - SPAC/SB 246 total estimated revenue received in the subsequent fiscal year from all those facilities will equal six percent of the net revenue received in the aggregate by those health care facilities in the previous calendar year;
and (3) structure the rates for each SPAC/SB 246 Page 4 intermediate care facility for individuals with intellectual disabilities so that the total estimated revenue received in the subsequent fiscal year from all those facilities will equal six percent of the net revenue received in the aggregate by all those facilities in the previous calendar year.
If the rate of net revenue provided in Paragraph (2) or (3) of Subsection B of this section exceeds the maximum percentage of net revenue for all health care facilities allowed by Section 1903(w)(4) of the federal Social Security Act, as that section may be amended or renumbered, the rate of the health care quality surcharge shall be reduced to a e e 17 percentage that will equal, but not exceed, the maximum e e n d 18 percentage allowed by that federal law.
= = l ] 19 D.
If the rate of net revenue provided in Paragraph a l r i 20 (3) of Subsection B of this section results in medicaid fee-fee-for-service t e a t for-service and medicaid managed care reimbursement rates that m m 21 e d exceed the upper payment limits allowed by Section r e 22 c e r c 23 1902(a)(30)(A) of the federal Social Security Act, as that e a n b 24 section may be amended or renumbered, the rate of the health u [ care quality surcharge shall be reduced to a percentage that .211666.4 - 5 - SPAC/SB 246 will result in reimbursement rates that equal, but do not exceed, those limits.
No later than thirty days following the effective date of the Health Care Quality Surcharge Act, a SPAC/SB 246 Page 5 health care facility shall report to the human services department the number of resident days provided by the health care facility, broken down by payer, and the net revenue earned by the health care facility for each of the most recent four calendar quarters available.
e e 17 Health care quality surcharge payments are due quarterly by the e e n d 18 twenty-fifth day of the month subsequent to the end of each = = l ] 19 calendar quarter based upon the non-medicare bed days reported a l r i 20 on the most recently filed calendar quarter report required t e a t pursuant to Subsection E of this section.
Initial health care m m 21 e d quality surcharge payments shall be based upon the non-medicare r e 22 c e r c 23 bed days reported on the most recently filed calendar quarter e a n b 24 report required pursuant to Subsection E of this section u [ closest to the effective date of the Health Care Quality .211666.4 - 6 - SPAC/SB 246 Surcharge Act.
[NEW MATERIAL ] EXEMPTION.--A health care facility with more than ninety thousand annual medicaid-medicaid-financed financed bed days may SPAC/SB 246 Page 6 claim an exemption in an amount equal to sixty-five percent of the health care quality surcharge due in a reporting period.
The percentage and annual medicaid-medicaid-financed financed bed days threshold may be modified by rule promulgated by the human services department, if necessary, for approval of the surcharge program by the federal centers for medicare and medicaid services.
[NEW MATERIAL ] HEALTH CARE FACILITY FUND--FUND--DISABILITY DISABILITY HEALTH CARE FACILITY FUND.-- A.
The funds consist of appropriations, distributions, transfers, gifts, grants, donations and bequests made to the e e 17 funds and income from the investment of the funds.
The funds e e n d 18 shall be administered by the human services department, and = = l ] 19 money in the funds is subject to appropriation by the a l r i 20 legislature to the human services department to carry out the t e a t purposes provided in this section.
Show all 88 changed lines (48 more)
Money in the funds shall be m m 21 e d disbursed on warrants signed by the secretary of finance and r e 22 c e r c 23 administration pursuant to vouchers signed by the secretary of e a n b 24 human services or the secretary's authorized representative.
u [ Any balance remaining in the funds at the end of a fiscal year .211666.4 - 7 - SPAC/SB 246 shall not revert to the general fund.
At least eighty percent of the money in the SPAC/SB 246 Page 7 health care facility fund shall be used for the following purposes and in the following order of priority for skilled nursing facilities and intermediate care facilities:
(2) to annually increase, on a per diem basis, as provided by rule promulgated by the human services department, each facility's respective medicaid fee-for-service and medicaid managed care reimbursement rates above those in effect upon the effective date of the Health Care Quality Surcharge Act and in subsequent years thereafter by at least the rate of nursing home inflation for the rate year as published on behalf of the federal centers for medicare and e e 17 medicaid services;
and e e n d 18 (3) to provide financial incentives in the = = l ] 19 form of supplemental payments, paid no less frequently than a l r i 20 quarterly, based upon performance data to improve the quality t e a t of skilled nursing facilities and intermediate care facilities.
m m 21 e d C.
The disability health care facility fund shall r e 22 c e r c 23 be used for the following purposes and in the following order e a n b 24 of priority for intermediate care facilities for individuals u [ with intellectual disabilities:
.211666.4 - 8 - SPAC/SB 246 (1) to increase per diem rates to those SPAC/SB 246 Page 8 facilities for the medicaid share of the health care quality surcharge as a pass-through, medicaid-allowable cost;
The initial health care quality surcharge payment by health care facilities for the first calendar quarter ending after the effective date of the Health Care Quality Surcharge Act shall be made twenty-five days after the e e 17 date the federal centers for medicare and medicaid services e e n d 18 approve the authorization sought by the secretary of human = = l ] 19 services pursuant to Section 11 of this 2019 act.
a l r i 20 F.
The initial quarterly supplemental payments to t e a t health care facilities made pursuant to Subsection B of this m m 21 e d section for the first calendar quarter ending after the r e 22 c e r c 23 effective date of the Health Care Quality Surcharge Act shall e a n b 24 be made thirty days after the date the federal centers for u [ medicare and medicaid services approve the authorization sought .211666.4 - 9 - SPAC/SB 246 by the secretary of human services pursuant to Section SPAC/SB 246 Page 9 11 of this 2019 act.
[NEW MATERIAL ] ADMINISTRATION AND ENFORCEMENT OF ACT.--The department shall interpret the provisions of the e e 17 Health Care Quality Surcharge Act.
The department shall e e n d 18 administer and enforce the collection of the health care = = l ] 19 quality surcharge, and the Tax Administration Act applies to a l r i 20 the administration and enforcement of that surcharge.
t e a t SECTION 8.
[NEW MATERIAL ] DEPARTMENTS REQUIRED TO m m 21 e d r e 22 PROMULGATE RULES.--TheRULES.-- The taxation and revenue department and the c e r c 23 human services department shall promulgate rules to carry out e a n b 24 the provisions of the Health Care Quality Surcharge Act, as u [ appropriate for each department, including the rate .211666.4 - 10 - SPAC/SB 246 calculations required to be performed by the human services department, and the SPAC/SB 246 Page 10 notification from that department to the taxation and revenue department pursuant to Section 4 of the Health Care Quality Surcharge Act.
"[NEW"DISTRIBUTION--HEALTH MATERIAL] DISTRIBUTION--HEALTH CARE QUALITY SURCHARGE--HEALTH CARE FACILITY FUND--DISABILITY HEALTH CARE FACILITY FUND.-- A.
A distribution pursuant to Section 7-1-6.1 NMSA e e 17 1978 shall be made to the disability health care facility fund e e n d 18 in an amount equal to the net receipts attributable to the = = l ] 19 health care quality surcharge imposed on intermediate care a l r i 20 facilities for individuals with intellectual disabilities t e a t pursuant to the Health Care Quality Surcharge Act." m m 21 e d SECTION 10.
Section 7-1-2 NMSA 1978 (being Laws 1965, r e 22 c e r c 23 Chapter 248, Section 2, as amended) is amended to read:
e a n b 24 "7-1-2.
APPLICABILITY.--The Tax Administration Act u [ applies to and governs:
.211666.4 - 11 - SPAC/SB 246 A.
the administration and enforcement of the SPAC/SB 246 Page 11 following taxes or tax acts as they now exist or may hereafter be amended:
e e 17 (11) petroleum products loading fee, which fee e e n d 18 shall be considered a tax for the purpose of the Tax = = l ] 19 Administration Act;
a l r i 20 (12) Alternative Fuel Tax Act;
t e a t (13) Cigarette Tax Act;
m m 21 e d (14) Estate Tax Act;
r e 22 c e r c 23 (15) Railroad Car Company Tax Act;
e a n b 24 (16) Investment Credit Act, rural job tax u [ credit, Laboratory Partnership with Small Business Tax Credit .211666.4 - 12 - SPAC/SB 246 Act, Technology Jobs and Research and Development Tax Credit SPAC/SB 246 Page 12 Act, Film Production Tax Credit Act, Affordable Housing Tax Credit Act and high-wage jobs tax credit;
[and ] (21) the telecommunications relay service surcharge imposed by Section 63-9F-11 NMSA 1978, which surcharge shall be considered a tax for the purposes of the Tax Administration Act;
e e 17 (1) Resources Excise Tax Act;
e e n d 18 (2) Severance Tax Act;
= = l ] 19 (3) any severance surtax;
a l r i 20 (4) Oil and Gas Severance Tax Act;
t e a t (5) Oil and Gas Conservation Tax Act;
m m 21 e d (6) Oil and Gas Emergency School Tax Act;
r e 22 c e r c 23 (7) Oil and Gas Ad Valorem Production Tax Act;
e a n b 24 (8) Natural Gas Processors Tax Act;
u [ (9) Oil and Gas Production Equipment Ad .211666.4 - 13 - SPAC/SB 246 Page 13 Valorem Tax Act;
(2) the workers' compensation fee authorized e e 17 by Section 52-5-19 NMSA 1978, which fee shall be considered a e e n d 18 tax for purposes of the Tax Administration Act;
= = l ] 19 (3) Uniform Unclaimed Property Act (1995);
a l r i 20 (4) 911 emergency surcharge and the network t e a t and database surcharge, which surcharges shall be considered m m 21 e d taxes for purposes of the Tax Administration Act;
r e 22 c e r c 23 (5) the solid waste assessment fee authorized e a n b 24 by the Solid Waste Act, which fee shall be considered a tax for u [ purposes of the Tax Administration Act;
.211666.4 - 14 - SPAC/SB 246 Page 14 (6) the water conservation fee imposed by Section 74-1-13 NMSA 1978, which fee shall be considered a tax for the purposes of the Tax Administration Act;
e e 17 SECTION 12.
DELAYED REPEAL.--Sections 1 through 9 of this e e n d 18 act are repealed effective January 1, 2023.
= = l ] 19 SECTION 13.
EFFECTIVE DATE.--The effective date of the a l r i 20 provisions of this act is July 1, 2019.
tSPAC/SB e246 aPage t - 15 -25 m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .211666.4
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View plain text versions (3)
- Final Version View text Current pdf
- Substitute PA substitute pdf
- Introduced introduced version pdf
Action History
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Signed
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passed House
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DO PASS committee report adopted
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DO PASS committee report adopted
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Sent to House Consumer & Public Affairs Committee & House Health & Human Services Committee
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passed Senate
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DO PASS committee report adopted
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DO NOT PASS, replaced with committee substitute
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Sent to Senate Public Affairs Committee & Senate Finance Committee
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Sent to Senate Pre-file
Sponsors
- Gerald Ortiz y Pino · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 111 not signed on
Sponsors (1)
- Ortiz y Pino, Gerald
Co-sponsors (0)
None.
Not signed on (111)
111 members have not signed on to this bill.
Show all 111 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Republican | 6 | 0 | 0 | 0 |
| Unaffiliated | 18 | 0 | 0 | 6 |
| Democrat | 12 | 0 | 0 | 0 |
| Total | 36 | 0 | 0 | 6 |
| % of votes cast | 86% | 0% | 0% | 14% |
How each member voted (42)
| Member | Party | Vote |
|---|---|---|
| PAPEN | — | Yea |
| PAYNE | — | Yea |
| BURT | — | Yea |
| CANDELARIA | — | Yea |
| RODRIGUEZ | — | Yea |
| FULFER | — | Yea |
| SANCHEZ | — | Yea |
| GOULD | — | Yea |
| SAPIEN | — | Yea |
| GRIGGS | — | Yea |
| SEDILLO-LOPEZ | — | Yea |
| INGLE | — | Yea |
| IVEY-SOTO | — | Yea |
| KERNAN | — | Yea |
| SMITH | — | Yea |
| NEVILLE | — | Yea |
| WHITE | — | Yea |
| ORTIZ y PINO | — | Yea |
| O'NEILL | — | Not Voting |
| PIRTLE | — | Not Voting |
| CISNEROS | — | Not Voting |
| RUE | — | Not Voting |
| MOORES | — | Not Voting |
| TALLMAN | — | Not Voting |
| Antoinette Sedillo Lopez | Democrat | Yea |
| Benny Shendo, Jr. | Democrat | Yea |
| Elizabeth "Liz" Stefanics | Democrat | Yea |
| George K. Muñoz | Democrat | Yea |
| Jeff Steinborn | Democrat | Yea |
| Joseph Cervantes | Democrat | Yea |
| Michael Padilla | Democrat | Yea |
| Mimi Stewart | Democrat | Yea |
| Pete Campos | Democrat | Yea |
| Peter Wirth | Democrat | Yea |
| Shannon D. Pinto | Democrat | Yea |
| William P. Soules | Democrat | Yea |
| Alan T. Martinez | Republican | Yea |
| Brian G. Baca | Republican | Yea |
| Craig W. Brandt | Republican | Yea |
| Gabriel Ramos | Republican | Yea |
| Pat Woods | Republican | Yea |
| William E. Sharer | Republican | Yea |
Subjects
Frequently asked questions
- Who sponsors SB 246?
- SB 246 is sponsored by Ortiz y Pino, Gerald.
- What is the current status of SB 246?
- This bill has been enacted into law. Introduced January 11, 2019. Enacted.
- Where can I track SB 246?
- Track SB 246 free on One Click Politics — get push/email alerts when it moves.
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