Provider FAQs on Senate Bill 249

The following are frequently asked questions regarding New Mexico Senate Bill 249 (2025) and its impact on payments contracted Medicaid providers will receive from Blue Cross and Blue Shield of New Mexico. Effective Jan. 1, 2026, this law requires BCBSNM to reimburse contracted Medicaid health care providers for all applicable gross receipts taxes that the provider is required to pay for contracted health care services furnished to BCBSNM’s Medicaid members.

Please note that this is not and we do not provide tax advice. We recommend consulting with a qualified tax professional or the New Mexico Taxation and Revenue Department for guidance specific to your practice.

We may update the FAQs periodically to reflect changes.

  • FAQs
     
    Q: What is SB 249 and what does it entail?
    A: SB 249 is a New Mexico state law that requires BCBSNM to reimburse contracted Medicaid health care providers, including telehealth providers, for all applicable gross receipts taxes that the provider is required to pay for contracted health care services. SB 249 requires BCBSNM to provide documentation that differentiates the GRT paid to the contracted health care provider from the Medicaid reimbursement for health care services.
    Q: What services qualify for the GRT reimbursement under SB 249?
    A: SB 249 applies to payments for health care services provided by a contracted Medicaid health care provider that is required to pay GRT to the State of New Mexico.
    Q: How will GRT be calculated?
    A: BCBSNM will calculate GRT based on the location where the service was rendered. Telehealth providers or those lacking a physical presence must pay GRT in the current year, if last year, they made $100,000 or more in taxable sales. This includes money made from selling services, licenses, physical goods and allowing others to use real property in New Mexico. 
    Q: How will GRT payments be remitted?
    A: Contracted Medicaid providers will receive a separate payment from BCBSNM for GRT.
    Q: Will the billing process be impacted?
    A: BCBSNM is not presently requiring any changes to billing processes for the implementation of SB 249 for providers contracted with us for New Mexico Medicaid.
    Q: How will claims be processed?
    A: There are presently no changes to the claims process for providers. GRT will be separately calculated, paid and documented outside of the claims process.
    Q: Will GRT be reflected on our Provider Claims Summary?
    A: No, contracted providers will receive a separate statement with the GRT payment amount.
    Q: Do providers need to use a new modifier or tax code on claims to BCBSNM?
    A: No, contracted providers do not presently need to submit claims any differently. BCBSNM does not plan to implement new modifiers or codes related to SB 249.
    Q: How will BCBSNM help providers identify the services to which BCBSNM applied GRT?
    A: Initially, the separate statement from BCBSNM with the GRT payment amount will facilitate identification of claims to which the GRT payment applies. By the second quarter of 2026, BCBSNM plans to enhance these statements to include line-level details.
    Q: Will BCBSNM amend provider contracts under SB 249?
    A: BCBSNM reached out to providers whose participation contracts were thus far determined to date need a contract amendment related to SB 249. BCBSNM is not presently aware of additional such contracts.

If you have additional questions, please reach out to your assigned Provider Network Representative.