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 4increases 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 306prohibits 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 101repeals 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 CoverageHB 34: School Nurse Licensure ProvisionsHB 156: Repeal Special Session Vaccination LawsSB 20: Prior Authorization & Prescription DrugsSB 21: Medicare Supplement Open EnrollmentSB 30: Reporting of Induced Abortions
Governor appoints John Bernitz to Eleventh Judicial District
Rural health care providers can now apply for $50M to stabilize access –  New round of health care funding builds on record $146M investment
State Fairgrounds District Board approves first phase of redevelopment – Plan includes housing, park and sports stadium
Natural Resources Trustee Maggie Hart Stebbins resigns
Governor signs state budget, capital outlay bills and tax package
April 2026
March 2026
February 2026
January 2026
December 2025
November 2025
October 2025
September 2025
August 2025
July 2025
June 2025
May 2025
April 2025
March 2025
February 2025
January 2025
December 2024
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
2022 Wildfires
COVID-19
Early Childhood Education
Legislative Updates
Public Safety
Uncategorized
The Office of Governor Michelle Lujan Grisham is located on the fourth floor of the New Mexico State Capitol in Room 400.
Address:490 Old Santa Fe Trail Room 400Santa Fe, NM 87501
Phone: 476-2200Toll free: 520-0020
Contact the Governor
Request a Meeting
Need Assistance from the Governor
Our Leadership
Attend or Speak at an Event
Apply for Boards and Commissions
Accessibility Statement
The postGovernor signs medical malpractice reform, other health care bills into lawappeared first onOffice of the Governor - Michelle Lujan Grisham.