Committee advances bill to remove sunset on Health Care Delivery and Access Act

Senate committee members voted to advance Senate Bill 101, which would remove the 07/01/2030 sunset in the Health Care Delivery and Access Act, making the provider-assessment program permanent.

Sponsor commentary and testimony focused on preserving a state program that officials say channels provider-assessment revenue into Medicaid matches and investments in workforce, infrastructure and quality of care. The sponsor told the committee the bill deletes the statute’s sunset language so the program remains available indefinitely.

Secretary Armijo of the health care authority testified the program "stabilized and strengthened" New Mexico’s health system, and warned that without state action the program would end in 2030 and could cause "major financial hardship for our hospitals," particularly in rural communities. Armijo told senators the program generated $360,000,000 in state funding that leveraged roughly $1.2 billion in federal funding paid through Medicaid, and that recent federal legislation (HR1) will phase down federal payments over time; she recommended making the program permanent to protect the remaining federal match.

Troy Clark, president and CEO of the New Mexico Hospital Association, said the program has been "a huge success," particularly for rural hospitals, and that hospitals have used the funds for workforce development and facility improvements. Frank Tenorio, CEO of Guadalupe County Hospital, said his hospital used HDAA funds for equipment and recruitment and urged passage.

Senators asked why the original statute included a sunset. Armijo said the sunset is a common statutory check to confirm compliance and that it gave the Legislature the opportunity to evaluate the program’s performance before making it permanent. Committee members also questioned whether a limited extension instead of repeal would be feasible; sponsors and the secretary said they sought permanence to preserve the state’s grandfathered status under federal rules.

The committee clerk recorded a motion for "due pass" moved by Senator Padilla and seconded by Senator Tobias. The roll call as recorded in the transcript resulted in the chair announcing the bill "we have a due pass" with "7 in the affirmative, 0 in the negative." The committee then moved on to other business.

Next steps: With the committee’s recommendation, SB101 will move forward in the legislative process for further consideration and floor action.