Senate committee backs bill to raise Medicaid pay for OB‑GYNs to shore up rural maternity care

Senate members on the Tax, Business and Transportation Committee voted to report SB370 do pass after proponents said the bill would increase Medicaid reimbursement rates for obstetricians and gynecologists to help address provider shortages in rural New Mexico.

The measure was presented to the committee by Senator (filling in) Carmen Cervantes, who said the bill’s aim is to increase available services in remote and rural parts of the state by making reimbursement more competitive so providers will stay and others will come. Lisa Curtis, chair of the New Mexico Commission on the Status of Women, told the committee the commission spent a year studying women’s health access and found a large disparity in what OB‑GYNs receive for maternity care. Curtis said that a typical pregnancy — about 15 visits plus delivery — currently reimburses roughly $2,200 under Medicaid, and that about 75 percent of births in New Mexico are paid by Medicaid.

Dr. Lisa Hoffler, vice chair of the New Mexico section of the American College of Obstetricians and Gynecologists and an expert on maternity coding, described the shortage of OB‑GYNs statewide and characterized the bill as a targeted workforce intervention. She said the measure requires that 75 percent of any reimbursement increase be directed to provider compensation.

Supporters from hospitals, clinicians and patient groups also testified. Carrie Robin Brunder of the New Mexico Medical Society and a board member of a nonprofit birth center in Albuquerque said obstetric care is delivered in many settings including clinics and birth centers and that increased payments would benefit providers statewide. Al Park, representing the New Mexico Hospital Association, said the state has “obstetrics deserts” and supported the bill for improving access. Patient advocates including Theresa Hassy and representatives of the New Mexico Commission on the Status of Women urged passage on public‑safety and access grounds.

Committee members asked about the bill’s fiscal placement. Senator Sher asked why the bill focuses on OB‑GYNs rather than a broader specialist pay increase; proponents replied the commission’s outreach and provider meetings showed obstetrical care as a priority and that OB‑GYNs — a profession that is largely female — face pronounced payment disparities compared with certain surgical specialties.

Senator O’Malley moved the committee to report SB370 do pass; Senator Figueroa seconded. With no opposition recorded, the committee directed the chair to record the measure as do pass.

If enacted, the bill would change state Medicaid reimbursement schedules for maternity care; the committee recorded the do‑pass recommendation for further action on the Senate floor.

Meetings and testimony for SB370 included sworn and technical testimony from ACOG and health‑system representatives; specific appropriation or effective‑date language will be decided in budget and finance proceedings.