The New Mexico Human Services Department (HSD) has announced the successful implementation of a significant $409 million reimbursement rate increase for most Medicaid healthcare providers. This increase is part of a strategic three-phase plan, with the first two phases now successfully completed.

According to an HSD press release, starting from July 1, 2023, New Mexico Medicaid providers will benefit from enhanced payments due to a rate benchmarking study conducted by HSD in 2022. The agency's budget request for fiscal year 2025 includes proposals for phase three rate increases.

"We are incredibly proud to have completed the roll-out of these rate increases, a testament to our commitment and support for New Mexico’s health care workforce and the state’s 896,528 Medicaid customers," said Kari Armijo, cabinet secretary for the New Mexico Human Services Department. "This initiative became a reality thanks to the invaluable support, investment and partnership of the governor and the Legislature."

Lorelei Kellogg, acting director for the New Mexico Medicaid program, added: "Thanks to this substantial funding boost, Medicaid providers across New Mexico will now receive reimbursements at rates as high as 120% of Medicare. By elevating rates, New Mexico Medicaid continues to work toward the goal of ensuring that all New Mexicans enrolled in the program have access to vital health care services."

The HSD manages a budget of approximately $7 billion and administers state and federal funds to provide essential services to low-income residents in New Mexico. According to information provided on its webpage, programs under its jurisdiction cover a range of areas including behavioral health services, child support, community services, assistance for individuals with disabilities, energy assistance, meals for homeless people, Medicaid services, refugee resettlement programs, school commodity foods distribution initiatives and The Emergency Food Assistance Program.