State officials would have to follow certain procedures before cutting off government funding for health care providers suspected of Medicaid fraud or overbilling under a measure passed Tuesday by the New Mexico Senate.
The legislation sponsored by Senate President Pro Tem Mary Kay Papen cleared the chamber on a 32-8 vote and was sent to the House for consideration.
The measure was spurred by the state’s handling of allegations of fraud and abuse involving 15 nonprofits that provided behavioral health services to needy New Mexicans. Republican Gov. Susana Martinez’s administration froze Medicaid payments to the providers while the attorney general’s office launched an investigation.