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ECECD outlines FIT rate increases and provider consolidation after RFPs; Medicaid billing integration under way

June 25, 2025 | Legislative Finance, Interim, Committees, Legislative, New Mexico


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ECECD outlines FIT rate increases and provider consolidation after RFPs; Medicaid billing integration under way
The subcommittee heard an update on Families, Infants and Toddlers (FIT), New Mexico’s early‑intervention program for infants and toddlers with developmental delays.

Secretary Griginski and FIT bureau staff said the department used prior trust‑fund allocations and a new cost study to inform a series of rate increases: a 15% rate increase in 2024, a supplemental appropriation in FY25 that enabled pay restorations and another 7% increase set for FY26. The department said it submitted a state‑plan amendment to shift eligible program claims to Medicaid and that early quarters of look‑back work have recovered roughly $2.7 million in federal drawdowns to date, with additional quarters under review.

Procurement and provider network: ECECD reported it completed an RFP cycle that yielded 25 awarded FIT providers statewide; six applications were not funded, two of which were new applicants that did not meet RFP rigor. A small number of awarded applications appealed, and one appeal was accepted. ECECD said the RFP sought to raise service standards and to consolidate contracts to ensure consistent, family‑guided, routines‑based intervention across providers.

Why it matters: FIT serves very young children where early identification and intervention are cost‑effective and have long‑term benefits. Rate setting, Medicaid integration and provider capacity shape access and the program’s fiscal sustainability.

Ending: The department said it will monitor the rate model and continue the procurement cycle, and will work with the Health Care Authority on Medicaid billing workflows to maximize federal reimbursement while ensuring continuity of family‑centered services.

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