A new piece of proposed legislation is designed to increase Medicaid funding and address New Mexico’s healthcare provider shortage.
If you’ve attempted to schedule medical appointments in New Mexico, you’ve likely already experienced that shortage and found yourself perhaps waiting months to see a healthcare professional.
According to the most recent data, from October 2023, issued by the New Mexico Health Care Workforce Committee, the state has shortages in a long list of provider categories, including registered nurses, EMTs, pharmacists, and primary care physicians.
Senate Bill 88 aims to establish a $2 billion permanent trust fund for Medicaid that would help attract and retain care providers by increasing their reimbursements.
If passed, the measure would invest $300 million, but that investment would be made significantly larger, thanks to New Mexico receiving $3 in matching Medicaid federal funds, for every dollar the state invests.
Fred Nathan, executive director of Think New Mexico, a nonpartisan think tank that’s backing the bill, says such a fund would grow quickly and soon improve provider retention.
“ To take a hundred million dollars, get it matched by $300 million, now you have $400 million, which can bring these rates up high enough that doctors, more doctors will see Medicaid patients, which makes healthcare accessible to more people,” said Nathan.
“And also they're paid enough that they'll want to stay in the state and not go to another state that's more generous.”
Asked whether potential changes in management of the U.S. budget could affect federal funds, Nathan said he’s confident the Medicaid match will remain for now.
But he added that federal uncertainty makes it critical to set aside money now for Medicaid.
The bill is sponsored by five state senators, including three of the body’s most powerful legislators, a Democrat, Finance Committee Chair George Muñoz; and two Republicans, Minority Leader Bill Sharer and Minority Whip Pat Woods.
A similar bill sponsored by Muñoz last year didn’t survive but Fred Nathan feels this year’s version will.
“It's got a good shot because you've got so many people in leadership that are involved and it seems to appeal both to liberals and conservatives, Democrats and Republicans,” Nathan said.
“They have the money. It seems like something that's necessary. Healthcare is a second leading expense to state government, and they've created all these other funds for rural libraries, the environment/conservation, higher education, early childhood education. So it just seems like it's the next place to go.”
The Medicaid trust fund bill is expected get a hearing in the Senate Health and Public Affairs Committee in coming days.
