OBGYN MEDICAID REIMBURSEMENT RATES

SB 370 would require New Mexico Medicaid to pay OB/GYN providers at least 250% of the Medicare reimbursement rate for covered services, starting from the July 2024 baseline. It directly affects OB/GYN providers who accept Medicaid patients and requires 75% of any new reimbursement revenue to fund staff pay raises or hiring. The bill appropriates $12 million for fiscal year 2026 to cover these increased payments, with unused funds reverting to the general fund. This policy change aims to improve provider compensation and staffing in a critical healthcare sector.