SANTA FE — The New Mexico House voted Saturday to pass a bill that eliminates facility fees—extra charges separate from doctors’ bills—for routine outpatient services, sending the measure to the Senate.
House Bill 306, Sponsored by Rep. Reena Szczepanski, and Sen. Elizabeth “Liz” Stefanics, both Santa Fe Democrats passed on an 69-0 vote.
Beginning Jan. 1, 2027, the bill would prohibit hospitals and health systems from charging facility fees directly to patients for preventative outpatient care, outpatient vaccination and telehealth services.
“New Mexicans shouldn’t face surprise charges for routine care,” said Kari Armijo, secretary of the New Mexico Health Care Authority. “HB 306 brings more clarity to what patients pay while maintaining strong hospital systems and protecting access in rural communities.”
Facility fees are charges billed by hospitals or health systems that are separate from clinician fees. HB 306 preserves facility fees for inpatient and emergency care and protecting rural hospitals.
HB 306 also strengthens patient notice requirements so families can better understand what they may owe before care is delivered, including clearer notices before care and standardized billing, and requires reporting to support statewide oversight.
“HB 306 is about practical consumer protection,” said House Majority Leader Reena Szczepanski, “It eliminates costly fees from patients’ bills and helps make routine care pricing more predictable and understandable for New Mexico families. More than 20 states have already moved on facility fee reform, and New Mexico is taking the same common-sense step to protect patients while preserving rural access and emergency care.”
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About the New Mexico Health Care Authority
The New Mexico Health Care Authority connects New Mexicans to the care and support they need to live healthy, full lives. The agency administers Medicaid, the Supplemental Nutrition Assistance Program (SNAP), the Low-Income Home Energy Assistance Program (LIHEAP), cash assistance, child support services, and behavioral health care across the state. HCA also oversees the State Health Benefits program for state employees and manages the Health Care Affordability Fund to help make coverage more affordable for working families. The agency licenses health care facilities, investigates complaints, and ensures providers deliver safe, high-quality care. In addition, HCA supports individuals with intellectual and developmental disabilities through a variety of home and community-based programs that protect health, safety, and human rights.