February 25, 2003
Bill To Generate Medicaid Revenue Passes House
The Associated Press
SANTA FE A measure to generate more money to help pay for the growing cost of Medicaid won approval in the House on Tuesday.
The legislation is a critical part of a blueprint by the House for financing state government next year, said Rep. Max Coll, D-Santa Fe, chairman of the House Appropriations and Finance Committee.
The proposal would eliminate an insurance premium tax exemption provided for state payments to Medicaid managed-care companies.
By imposing the tax, the state will have to spend an estimated $7 million to cover the higher payments to providers. However, the increased state spending will be subject to federal matching money. For every $1 spent by the state on Medicaid, the federal government provides $3.
Coll said the legislation should generate a total $28 million netting $21 million from the federal government that will help New Mexico finance Medicaid.
A proposed state budget by the Appropriations and Finance Committee takes into account the additional revenues anticipated from the premium tax legislation.
The bill passed 57-1 and was sent to the Senate.
Voting against the proposal was Rep. Rory Ogle, R-Albuquerque.