New Mexico House bill authored by Rep. Szczepanski restricting hospital facility fees and increasing transparency passes House and Senate

Passed bill authored by State Rep. Reena Szczepanski aims to limit when hospitals can charge facility fees and to increase transparency about those fees, following approval in both the House and Senate, according to the New Mexico Legislature.

HB 306 passed both chambers as of Thursday, Feb. 19, clearing the House by a vote of 69-0 and the Senate by a vote of 39-0.

In the House, 44 Democrats and 25 Republicans voted in favor of the bill, with no opposition.

Meanwhile, in the Senate, 22 Democrats and 15 Republicans voted in favor, also with no opposing votes.

Reena Szczepanski introduced the bill in the New Mexico House on Wednesday, Feb. 4 during the 57th Legislature.

Szczepanski graduated from Brown University with a BA.

Szczepanski, a Democrat, was elected to the New Mexico State House in 2023 to represent the state’s 47th House district, replacing previous state representative Brian Egolf.

According to the New Mexico Legislature website, the bill’s title was officially listed as: ‘Prohibit Certain Health Care Facility Fees’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill, the Fair Pricing for Routine Medical Care Act, restricts when hospitals and health systems may charge facility fees and increases transparency about those fees. Beginning Jan. 1, 2027, providers generally may not bill patients a facility fee for preventive care, vaccinations or telehealth in outpatient settings, with exceptions for critical access hospitals, certain rural sole community hospitals and affiliated rural clinics. The bill allows facility fees for inpatient and emergency department care, requires advance notice and clear signage when fees may be charged, and mandates standardized, itemized bills that identify any facility fee and related insurance charges. Hospitals and health systems must also report detailed facility fee data to the state’s all-payer claims database for the prior three years.

The bill was co-sponsored by Sen. Liz Stefanics (Democrat – District 39) and Sen. Liz Stefanics (Democrat – District 39).

In New Mexico, the legislative process involves multiple steps: a bill is introduced in either the House or Senate, assigned to a committee for review, debated and voted on in both chambers, and, if approved, sent to the governor for signature or veto. The Legislature meets annually, commencing on the third Tuesday in January, with 60-day sessions in odd-numbered years and 30-day sessions in even-numbered years. While numerous bills are introduced each session, only a fraction successfully navigate the process to become law. You can read more about bills and other measures here.