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Committee approves bill to require clearer gross-receipts tax accounting from MCOs to providers
Summary
Senate Bill 249 received a do-pass recommendation after providers and associations described inconsistent or opaque treatment of gross-receipts tax (GRT) by managed care organizations. Supporters said the bill would require MCOs to identify GRT amounts in payments so providers receive full reimbursement.
The House Health and Human Services Committee recommended Senate Bill 249 after health-care providers and associations testified that managed care organizations (MCOs) sometimes fail to reimburse providers fully for gross-receipts tax (GRT) on Medicaid payments.
Proponents including ambulance and home-care providers, the Desert States Physical Therapy Network and the New Mexico Cancer Center told the committee that when MCOs pay claims they do not always itemize or remit the full GRT portion, leaving providers unable to both recover the tax amount and report receipts correctly.
Sponsor testimony said the bill would require MCO claim payments to clarify how much of a payment is for the service and how much is the GRT portion, ensuring providers receive the intended reimbursement and can report taxes accurately. Witnesses offered an example: if a baby well check is set at a fee-for-service rate and a county's GRT rate is 7.5%, providers should receive the fee-plus-GRT amount instead of only the fee.
A motion for a do-pass recommendation was made; no opposition was voiced in the hearing excerpt and the committee recorded a do-pass recommendation for Senate Bill 249.
