LOS LUNAS, N.M. — Governor Michelle Lujan Grisham today signed several bills that will transform New Mexico’s health care system by reforming medical malpractice law, health care affordability, patient billing transparency and hospital funding and more.

The bills — HB 99, HB 4, HB 306 and SB 101, among others — represent a historic milestone in the governor’s years-long push to alleviate physician shortages, make health care more affordable and improve the long-term financial security of hospitals across New Mexico. The governor signed the legislation at the soon-to-open Valencia County Hospital in Los Lunas, which is being partially funded with a $50 million state investment.

“New Mexico families deserve a health care 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,” said Governor Lujan Grisham. “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.

“I want to thank every member of the New Mexico Legislature who voted for these bills, and especially the sponsors for their hard work in making sure they got to my desk,” the governor added. “All New Mexicans will benefit as a result.”

Medical malpractice reform that protects patients and doctors

HB 99, the medical malpractice reform bill, will help reduce the cost of medical malpractice insurance and attract more physicians to New Mexico. The bill creates tiered caps on punitive damages — $1 million for independent providers, $6 million for locally owned hospitals and $15 million for large systems — and raises the evidentiary standard to from a preponderance of evidence to “clear and convincing,” requiring judicial review before punitive damage claims can proceed.

The bill passed the House 66-3 and the Senate 40-2. Sponsors include Reps. Christine Chandler, Minority Floor Leader Gail Armstrong and House Majority Whip Day Hochman-Vigil.

Protecting coverage when Congress won’t

HB 4 increases revenue to the Health Care Affordability Fund, ensuring coverage stays affordable for working families and small businesses statewide. The FY27 budget approved by New Mexico lawmakers includes $294.4 million for health care affordability programs — protecting coverage for up to 46,600 New Mexicans and reducing costs for up to 122,000 people statewide.

In 2025, Republicans in Congress eliminated the Affordable Care Act’s enhanced premium tax credits and slashed Medicaid. Without this state investment, tens of thousands of New Mexicans would risk losing coverage immediately. HB 4 passed the House 48-19 and the Senate 24-12. Sponsors include House Floor Leader Reena Szczepanski, Rep. Liz Thomson, Rep. Bobby Gonzales, Rep. Joseph Hernandez and Rep. Anita Gonzales.

Ending surprise bills for routine care

HB 306 prohibits hospitals and health systems from charging facility fees directly to patients for preventive outpatient care, outpatient vaccinations and telehealth services — curbing surprise charges for routine care. The bill preserves facility fees for inpatient and emergency care and protects rural hospitals. It also strengthens patient notice requirements and standardizes billing so families understand what they may owe before care is delivered.

HB 306 passed both chambers unanimously. Sponsors include House Floor Leader Reena Szczepanski and Sen. Liz Stefanics.

Protecting hospitals that serve Medicaid patients

SB 101 repeals the sunset clause in the Health Care Delivery and Access Act, ensuring continued financial support for eligible hospitals that care for Medicaid members. The Act, signed in 2024, was created to support urban and rural hospitals using a funding structure that leverages federal dollars.

Federal changes enacted in July 2025 reduced funding levels for hospital programs like this one nationwide, and the program is expected to shrink to about one-third of its current size. SB 101 helps protect the program from future federal changes that could put it at risk of termination. The bill passed both chambers unanimously. Sponsors include Sen. Liz Stefanics, House Floor Leader Reena Szczepanski, Rep. Liz Thomson, Sen. Linda Lopez and Sen. Nicole Tobiassen.

Valencia County Hospital

The governor signed the bills at Valencia County Hospital, a 15-bed acute care facility owned by Valencia County and operated by Community Hospital Corp. and Lovelace. The state has committed $50 million to the hospital, including $11.5 million in capital outlay funding — $8.5 million in 2025 and $3 million in 2026 — with a goal of completion by end of year.

The governor also signed the following health care bills today:

HB 38: Wheelchair Insurance Coverage
HB 34: School Nurse Licensure Provisions
HB 156: Repeal Special Session Vaccination Laws
SB 20: Prior Authorization & Prescription Drugs
SB 21: Medicare Supplement Open Enrollment
SB 30: Reporting of Induced Abortions