Bill > SB88

This bill creates two new funds in New Mexico's state treasury: the Medicaid Trust Fund and the State-Supported Medicaid Fund. The Medicaid Trust Fund will be a non-reverting fund that can receive distributions, appropriations, gifts, grants, and donations, with income from investments credited to the fund. The state investment officer will manage the fund's investments and provide quarterly and annual reports to legislative committees. Starting in July 2029, if the fund balance reaches at least $500 million, five percent of the average three-year market value will be distributed to the State-Supported Medicaid Fund. The trust fund can be used in specific circumstances, such as when federal Medicaid matching funds decrease significantly or to prevent reductions in Medicaid coverage. Additionally, the bill modifies existing law to require that reversions (unspent funds) in excess of $110 million from the general fund be transferred to the Medicaid Trust Fund until it reaches $2 billion. The State-Supported Medicaid Fund will be administered by the Health Care Authority and used to support the state Medicaid program and match federal funds. The bill will take effect on July 1, 2025, providing a mechanism to create a more stable funding source for Medicaid and potentially protect against future federal funding fluctuations.

Health and Social Services

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=88&year=25