Under the proposal, the state would rescind previous reimbursement increases from nearly 2,000 general physicians, and trim payment rates to hospitals by 3 percent to 8 percent, according to the report. Previous reimbursement rate increases would also be reversed at 29 hospitals that receive funding to offset the costs of uncompensated care. Preventive care and obstetrics would be exempt from the reimbursement cuts.
More than one-third of New Mexico’s 2.1 million residents are fully covered by Medicaid, with 40 percent of the state population at least somewhat covered by Medicaid, according to the report.
The department estimates the cuts would save the state general fund between $26 million and $33 million per year. New Mexico is aiming to close an $86 million state funding gap for Medicaid services by mid-2017 as a result of budget restrictions associated with a declining performance in the energy market and other spending priorities, according to the report. The budget shortfall could mean New Mexico will have to forgo over $300 million in federal matching funds for Medicaid.
Under the proposed Medicaid reimbursement rates, the University of New Mexico Hospital in Albuquerque would see the most significant reductions of 8 percent for inpatient services and 5 percent for outpatient. All other private and public hospitals would face a 5 percent drop for inpatient services and 3 percent for outpatient for Medicaid patients.
Gov. Susana Martinez’s (R) administration aims to have Medicaid provider reimbursement changes in place by the start of the new fiscal year, July 1.
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