SANTA FE — The New Mexico Senate passed a bill today to eliminate facility fees—extra charges separate from doctors’ bills—for routine outpatient services, sending the measure to the governor’s desk for signature.
House Bill 306, Sponsored by House Majority Leader Reena Szczepanski, and Sen. Elizabeth “Liz” Stefanics, both Santa Fe Democrats, cleared the Senate on a bipartisan 39-0 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.
“We thank New Mexico lawmakers for their leadership in advancing this legislation,” said Kari Armijo, cabinet secretary of the New Mexico Health Care Authority. “This measure helps support a stronger, more affordable health care system for New Mexicans, ensuring that unexpected costs will not deter patients from seeking the preventive care they need.”
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 is about fairness and trust in health care billing,” said Sen. Elizabeth “Liz” Stefanics, one of the bill’s sponsors. “When people go in for a checkup, a vaccine, or a telehealth visit, they should be able to focus on their health — not worry about unexpected add-on charges. This bill brings common-sense protections for patients while keeping important safeguards in place for rural and emergency care.”
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.