New Mexico Cuts Medicaid Provider Organization Rates By 3%-8%, Behavioral Health Providers Exempt

On April 26, 2016, in response to an order by the legislature to reduce Medicaid spending the New Mexico Human Services Department (HSD) issued proposed reductions to Medicaid provider rates, effective July 1, 2016.  The rate cut affects Medicaid managed care reimbursement rates as well as fee-for-service. Rates will be cut by from 3% to 8%, but behavioral health provider organization rates will not be cut.

The HSD proposal rescinds enhanced reimbursements to nearly 2,000 physicians, and reduces reimbursement rates to hospitals by between 3% and 8%. Although the proposal rescinds enhanced reimbursements, to preserve access to . . .