HEALTH CARE GROSS RECEIPTS DEDUCTION

SB0013

SENATE BILL 13

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Natalie Figueroa
and
Jeff Steinborn
and
Pete Campos

and
Doreen Y. Gallegos

AN ACT

RELATING TO TAXATION; EXTENDING THE SUNSET DATE FOR A GROSS
RECEIPTS TAX DEDUCTION FOR HEALTH CARE PRACTITIONERS AND
EXPANDING THE DEDUCTION TO INCLUDE COINSURANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 7-9-93 NMSA 1978 (being Laws 2004,
Chapter 116, Section 6, as amended) is amended to read:

"7-9-93. DEDUCTION--GROSS RECEIPTS--CERTAIN RECEIPTS FOR
SERVICES PROVIDED BY HEALTH CARE PRACTITIONER OR ASSOCIATION OF
HEALTH CARE PRACTITIONERS.--

A. Receipts of a health care practitioner or an
association of health care practitioners for commercial
contract services or medicare part C services paid by a managed
care organization or health care insurer may be deducted from
gross receipts if the services are within the scope of practice
of the health care practitioner providing the service.
Receipts from fee-for-service payments by a health care insurer
may not be deducted from gross receipts.

B. Prior to July 1, [
2028
]
2031
, receipts from

coinsurance
, a copayment or
a
deductible paid by an insured or
enrollee to a health care practitioner or an association of
health care practitioners for commercial contract services
pursuant to the terms of the insured's health insurance plan or
enrollee's managed care health plan may be deducted from gross
receipts if the services are within the scope of practice of
the health care practitioner providing the service.

C. The deductions provided by this section shall be
applied only to gross receipts remaining after all other
allowable deductions available under the Gross Receipts and
Compensating Tax Act have been taken.

D. A taxpayer allowed a deduction pursuant to this
section shall report the amount of the deduction separately in
a manner required by the department.

E. The deductions provided by this section shall be
included in the tax expenditure budget pursuant to Section
7-1-84 NMSA 1978 with an analysis of the cost of the
deductions.

F. As used in this section:

(1) "association of health care practitioners"
means a corporation,
an
unincorporated business entity or other
legal entity organized by, owned by or employing one or more
health care practitioners; provided that the entity is not:

(a) an organization granted exemption
from the federal income tax by the United States commissioner
of internal revenue as organizations described in Section
501(c)(3) of the United States Internal Revenue Code of 1986,
as that section may be amended or renumbered; or

(b) a health maintenance organization,
a

hospital,
a
hospice,
a
nursing home or an entity that is solely
an outpatient facility or intermediate care facility licensed
pursuant to the [
Public Health Act
]
Health Care Code
;

(2) "commercial contract services" means
health care services performed by a health care practitioner
pursuant to a contract with a managed care organization or
health care insurer other than those health care services
provided for medicare patients pursuant to Title 18 of the
federal Social Security Act or for medicaid patients pursuant
to Title 19 or Title 21 of the federal Social Security Act;

(3) "copayment"
or "coinsurance"
means [
a
fixed dollar
]
an
amount that a health care insurer or managed
care health plan requires an insured or enrollee to pay upon
incurring an expense for receiving medical services;

(4) "deductible" means the amount of covered
charges an insured or enrollee is required to pay in a plan
year for commercial contract services before the insured's
health insurance plan or enrollee's managed care health plan
begins to pay for applicable covered charges;

(5) "fee-for-service" means payment for health
care services by a health care insurer for covered charges
under an indemnity insurance plan;

(6) "health care insurer" means a person that:

(a) has a valid certificate of authority
in good standing pursuant to the New Mexico Insurance Code to
act as an insurer,
a
health maintenance organization or
a

nonprofit health care plan or prepaid dental plan; and

(b) contracts to reimburse licensed
health care practitioners for providing basic health services
to enrollees at negotiated fee rates;

(7) "health care practitioner" means:

(a) a chiropractic physician licensed
pursuant to the provisions of the Chiropractic Physician
Practice Act;

(b) a dentist or dental hygienist
licensed pursuant to the Dental Health Care Act;

(c) a doctor of oriental medicine
licensed pursuant to the provisions of the Acupuncture and
Oriental Medicine Practice Act;

(d) an optometrist licensed pursuant to
the provisions of the Optometry Act;

(e) an osteopathic physician licensed
pursuant to the provisions of the Medical Practice Act;

(f) a physical therapist licensed
pursuant to the provisions of the Physical Therapy Act;

(g) a physician or physician assistant
licensed pursuant to the provisions of the Medical Practice
Act;

(h) a podiatric physician licensed
pursuant to the provisions of the Podiatry Act;

(i) a psychologist licensed pursuant to
the provisions of the Professional Psychologist Act;

(j) a registered lay midwife registered
by the department of health;

(k) a registered nurse or licensed
practical nurse licensed pursuant to the provisions of the
Nursing Practice Act;

(l) a registered occupational therapist
licensed pursuant to the provisions of the Occupational Therapy
Act;

(m) a respiratory care practitioner
licensed pursuant to the provisions of the Respiratory Care
Act;

(n) a speech-language pathologist or
audiologist licensed pursuant to the Speech-Language Pathology,
Audiology and Hearing Aid Dispensing Practices Act;

(o) a professional clinical mental
health counselor, marriage and family therapist or professional
art therapist licensed pursuant to the provisions of the
Counseling and Therapy Practice Act who has obtained a master's
degree or a doctorate;

(p) an independent social worker
licensed pursuant to the provisions of the Social Work Practice
Act; and

(q) a clinical laboratory that is
accredited pursuant to 42 U.S.C. Section 263a but that is not a
laboratory in a physician's office or in a hospital defined
pursuant to 42 U.S.C. Section 1395x;

(8) "managed care health plan" means a health
care plan offered by a managed care organization that provides
for the delivery of comprehensive basic health care services
and medically necessary services to individuals enrolled in the
plan other than those services provided to medicare patients
pursuant to Title 18 of the federal Social Security Act or to
medicaid patients pursuant to Title 19 or Title 21 of the
federal Social Security Act;

(9) "managed care organization" means a person
that provides for the delivery of comprehensive basic health
care services and medically necessary services to individuals
enrolled in a plan through its own employed health care
providers or by contracting with selected or participating
health care providers. "Managed care organization" includes
only those persons that provide comprehensive basic health care
services to enrollees on a contract basis, including the
following:

(a) health maintenance organizations;

(b) preferred provider organizations;

(c) individual practice associations;

(d) competitive medical plans;

(e) exclusive provider organizations;

(f) integrated delivery systems;

(g) independent physician-provider
organizations;

(h) physician hospital-provider
organizations; and

(i) managed care services organizations;
and

(10) "medicare part C services" means services
performed pursuant to a contract with a managed health care
provider for medicare patients pursuant to Title 18 of the
federal Social Security Act."

SECTION 2.
EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2026.

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