Committee advances substitute limiting facility fees for certain preventive and telehealth services

The House Health and Human Services committee moved a committee substitute for House Bill 306 forward after hearing both opposition from hospitals and support from insurers, consumer advocates and purchaser groups.

The substitute targets a narrow set of services — preventive care, vaccinations (including mobile vaccination services), and certain telehealth visits — and bars charging an additional facility fee for those services except where a rural hospital exemption applies. Sponsor representatives said the substitute narrows the original bill in response to hospital feedback and added reporting requirements to capture facility‑fee data in the state’s all‑payer claims database.

Hospital representatives said prohibiting facility fees for urban hospitals would put financial pressure on providers that deliver complex and inpatient care. "Prohibiting urban hospitals from charging facility fees is an unnecessary financial pressure placed on the providers that serve the sickest and provide the most complex care," a New Mexico Hospital Association representative told the committee.

Supporters, including Blue Cross Blue Shield of New Mexico and other insurers and consumer‑advocacy groups, said facility fees are a known driver of higher premiums and cause confusing surprise charges for patients. Marla Schoetz of Blue Cross Blue Shield said the bill includes consumer protections and noted that for insured patients the fees typically appear in plan costs rather than direct patient charges, which can then affect premiums.

The Health Care Authority said the substitute focuses first on patient protections and building data so policymakers can quantify the long‑term impact; the substitute requires reporting so the state can better understand how facility fees affect patients and premiums. The substitute preserves facility fees outside the narrow list of services and retains the rural‑hospital exemption.

The committee adopted the substitute and approved a motion to advance the committee substitute; the chair announced the substitute had a "do pass" recommendation.

Next steps include further consideration by other House panels or the full chamber.