This bill expands the health receipts deduction for gross receipts tax to exempt the payments of patients that are uninsured or lack managed care coverage. It increases the value of the dollars they must spend on healthcare to the same level as those in surrounding states that do not have the tax. It also puts them on equal footing with New Mexicans that currently have managed care coverage. It creates a more equitable healthcare system.
While the bill is not targeted specifically toward dental receipts, it will have a greater impact on services like dental and optical that are typically not covered by general health insurance. These services were less impacted by the deductions adopted last year and in previous revisions. The bill does provide relief to patients for the healthcare expenses they pay themselves.
Adopting this expansion of the healthcare GRT deduction will go far to improve New Mexico’s practice business environment. New Mexico’s healthcare providers are leaving the state at an alarming rate for surrounding states which do not have equivalent taxes. The cost of eliminating this tax is low compared to the increased value of dollars patients use to purchase healthcare in New Mexico.
New Mexico Truth in Dental Benefits 