Healthcare Reforms and Challenges: Inside New Mexico’s Legislature

On a recent edition of Health Para Todos on KSWV Radio, co-host Larry Martinez welcomed back Fred Nathan, founder and CEO of Think New Mexico, for a wide-ranging conversation about healthcare policy and the outcomes of New Mexico’s 2025 legislative session. Together, they explored recent developments, legislative wins, and the continued push to make healthcare more accessible and affordable across the state.

One of the major accomplishments discussed was the passage of Senate Bill 88, which establishes a Medicaid Trust Fund to address low provider reimbursement rates. Nathan described the bill as part of one of Think New Mexico’s most ambitious efforts to date. “We had proposed in our report… creating a $2 billion fund to address one of the three reasons that doctors retire early or leave the state altogether,” Nathan said. Though the initial funding fell short of that target, the Legislative Finance Committee projects $511 million will be invested within the first three years. “We’d be hard-pressed to complain about $511 million—that’s very generous,” Nathan added.

Martinez, who previously served as Deputy Director of the Medical Assistance Division, provided historical context: “We always felt there was something just innately wrong in granting Medicaid eligibility to populations… and then patting them on the back and saying, ‘Good luck, find somebody who will serve you.’” He emphasized the importance of continued efforts to raise provider reimbursement rates to make Medicaid coverage meaningful.

The conversation also addressed the proposal to reduce the gross receipts tax (GRT) on medical services—an added cost borne by healthcare providers. While the Legislature included a $49.8 million reduction in its omnibus tax bill, the measure was vetoed by Governor Michelle Lujan Grisham. “It would have been a morale booster,” Nathan said, “because it would have shown to the provider community that we’re headed in the right direction.” He acknowledged the governor’s concern about the bill’s fiscal structure, noting, “She felt that it was sloppy and could have been done better—and I think legislators would agree.”

A significant portion of the discussion focused on efforts to join more interstate medical licensure compacts. The compacts would allow providers licensed in other states to more easily practice in New Mexico, including via telehealth—a service increasingly vital to rural communities. Though several compact bills passed the House unanimously, they stalled in the Senate Judiciary Committee. “If the legislature could just get beyond this trial lawyer hurdle, which is so unnecessary, it would make it so much easier for so many families in New Mexico to receive healthcare by telehealth,” Nathan said.

The interview also touched on medical malpractice reform, particularly Senate Bill 176, which sought to cap attorney fees in malpractice cases—a model based on California’s existing law. “We think that’s balanced and fair,” Nathan said, “but the trial lawyers didn’t see it that way.” Despite those challenges, the bill attracted bipartisan support from 24 co-sponsors. “That’s more than any other bill in this last session,” Nathan noted, calling it an encouraging sign for future progress.

Martinez agreed, pointing out that these issues transcend party lines. “It didn’t matter whether you were Republican or Democrat,” he said. “It just made good common sense to do some things that will hopefully result in a much more robust provider community.”

Both Nathan and Martinez emphasized the importance of continued public engagement. “We generated… 15,000 emails going to legislators,” Nathan shared. “And in rural New Mexico, these problems are even more dire.” He encouraged listeners to reach out to their representatives and the governor. “Hopefully,” he said, “we might be able to get a message from the governor in the 2026 session.”

Martinez closed the program with a familiar phrase: “It’s not over yet. As Yogi Berra would say, ‘It ain’t over till it’s over.’” Nathan responded with a smile, “We’ll keep coming back—the ninth inning, the tenth inning—whatever it takes to get it done.”

Editor’s Note: This article was written with support from AI-assisted tools to help transcribe, organize, and summarize the conversation accurately. All quotes are drawn directly from the recorded interview. Content was reviewed for clarity and journalistic standards prior to publication.