Signed by Governor Michelle Lujan Grisham

Vote Smart's Synopsis:

Vote to pass a bill that establishes a Medicaid trust fund and a state supported Medicaid fund in New Mexico.

Highlights:

• Establishes the “medicaid trust fund” as a nonreverting fund in the state treasury (Sec. 1).

• Requires the state investment officer to report to the legislative finance committee quarterly regarding investments made from money in the trust fund (Sec. 1).

• Requires distributions to be made from the trust fund to the state-supported medicaid fund on each July 1 beginning in 2029 (Sec. 1).

• Specifies that the distributions made to the state-supported medicaid fund may not be made until the balance of the trust fund is at least $500 million (Sec. 1).

• Authorizes money in the trust fund to be appropriated for any purpose if federal matching funds for the state medicaid program do the following for a fiscal year (Sec. 1):

• Decrease by at least 7.5% from the previous fiscal year; or

• Are less than a one-to-one match with money appropriated by the legislature for the program.

• Authorizes appropriations from the trust fund to support the state medicaid program prior to 2029 if a reduction in federal medicaid funding causes a reduction in coverage or benefits (Sec. 1).

• Authorizes expenditures from the trust fund in the event that general fund balances will not meet the level of appropriations authorized for a fiscal year (Sec. 1).

• Establishes the “state-supported medicaid fund” in the state treasury, which will be subject to appropriation by the legislature to support the state medicaid program and to match federal funds for the program (Sec. 2).

• Specifies that unreserved and undesignated fund balances in the reverting fund will revert to the general fund (Sec. 3).

• Specifies that the balance of reverting funds exceeding $110 million will be transferred to the medicaid trust fund until it reaches $2 billion (Sec. 3).

• Specifies that this Act takes effect July 1, 2025 (Sec. 4).

Full Bill Text