New Mexico braces for Medicaid cuts

Sunday, April 4, 2004

April 5, 2004

SANTA FE, N.M. - HME suppliers here are facing an across-the-board reimbursement cut of 3%-5% as the state looks to balance its 2005 fiscal budget by cutting $41 million in spending.
Most of the state’s DME business is managed by three health systems, so providers will not feel the brunt of the cuts until the state’s HMOs revisit their contractual relations with the state’s providers.
Providers are not likely to put up much resistance to the cuts, partly because they expect cuts to other health sectors, like home health nursing to be much deeper and partly too because the state lacks a DME association. AAHomecare’s membership directory does not include any members from New Mexico.
“They’ve had some public hearings on the cuts,” said Marcia Togami, general manager of A&R Medical Supply in Albuquerque. “Some of us [independents] attend. We attend. Most DME companies in the state are either nationals or independents who figure, well that’s life. I’m not going to be able to make changes.”