PERSONAL CARE SERVICES MEDICAID REIMBURSEMENT

HB 83 requires New Mexico's Health Care Authority to set minimum Medicaid reimbursement rates for personal care services: $23.50 per hour for consumer-delegated care and $19.78 per hour for consumer-directed care. It mandates that personal care service agencies using Medicaid funds must spend at least 70% of the reimbursement on direct care worker costs, including wages, benefits, training, and supervision. The bill defines "direct care workforce expenditures" to cover all employee-related expenses and requires agencies to maintain records for audits. A $51.4 million appropriation from the general fund supports this fee schedule update for fiscal year 2027. This directly affects agencies providing Medicaid-covered personal care services to individuals needing assistance with daily living activities.