New Mexico Gov. Michelle Lujan Grisham signed multiple bills into law March 6 that aim to reform hospital funding, medical malpractice rules and patient billing.
Ms. Lujan Grisham signed the bills at the soon-to-open Los Lunas, N.M.-based Valencia County Hospital, a 15-bed acute care facility that is owned by the county and will be operated by Community Hospital Corp. and Albuquerque, N.M.-based Lovelace Health System, according to a March 6 news release. The hospital is also backed by $50 million in state investment.
“New Mexico families deserve a healthcare system that works for them — one where doctors are available, bills are fair and coverage doesn’t disappear because of bad decisions made in Washington,” Ms. Lujan Grisham said in the release. “The bills I signed today are a direct response to the barriers that have stood between New Mexicans and the health care they need and deserve.”
Here are five things to know:
1. Ms. Lujan Grisham signed HB 99, which creates tiered caps on punitive damages in medical malpractice lawsuits, including $1 million for independent providers, $6 million for locally owned hospitals and $15 million for large health systems. It also raises the evidentiary standard required before punitive damage claims can move forward. The bill passed the House 66-3 and the Senate 40-2.
2. HB 4 directs $294.4 million into the Health Care Affordability Fund, which protects coverage for up to 46,600 New Mexicans and reduces costs for up to 122,000 people across the state.
The release said the state investment helps offset possible coverage loss following the federal elimination of enhanced ACA premium tax credits and Medicaid cuts in H.R. 1.
3. HB 306, which passed both chambers unanimously, bars hospitals and health systems from charging patients facility fees for preventive outpatient care, telehealth services and vaccinations.
“The bill preserves facility fees for inpatient and emergency care and protects rural hospitals,” the release said. “It also strengthens patient notice requirements and standardizes billing so families understand what they may owe before care is delivered.”
4. SB 101 repeals the sunset clause in the Health Care Delivery and Access Act, which was signed in 2024, and preserves a program that supports hospitals that serve Medicaid members. The program is expected to shrink to around one-third of its original size due to federal changes enacted in July 2025. The bill passed both chambers unanimously.
5. Ms. Lujan Grisham also signed a number of other bills related to healthcare coverage, licensing and other regulatory matters. Among them were HB 38: Wheelchair Insurance Coverage; HB 34: School Nurse Licensure Provisions; HB 156: Repeal Special Session Vaccination Laws; SB 20: Prior Authorization and Prescription Drugs; SB 21: Medicare Supplement Open Enrollment and SB 30: Reporting of Induced Abortions, the release said.
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