N.M. Stat. § 27-11-17

Current through 2024, ch. 69
Section 27-11-17 - Award of costs, fees and interest
A. If a medicaid provider or subcontractor is the prevailing party in any expedited adjudicatory or court proceeding brought by the medicaid provider or subcontractor pursuant to the Medicaid Provider and Managed Care Act on or after January 1, 2020 in connection with a preliminary or final determination of overpayment or a determination of credible allegation of fraud, the medicaid provider or subcontractor shall be entitled to:
(1) reasonable administrative costs incurred in connection with an expedited adjudicatory proceeding with the department;
(2) reasonable litigation costs incurred in connection with a court proceeding; and
(3) interest pursuant to Subsection F of this section.
B. As used in this section:
(1) "court proceeding" means any civil action brought in state district court;
(2) "reasonable administrative costs" means actual charges for preparation for and conduct of an administrative proceeding, including:
(a) court reporter fees, service of process fees and similar expenses;
(b) the services of expert witnesses;
(c) any study, analysis, report, test or project reasonably necessary for the preparation of the party's case; and
(d) fees and costs paid or incurred for the services of attorneys or of certified public accountants in connection with the expedited adjudicatory proceeding; and
(3) "reasonable litigation costs" means:
(a) reasonable court costs; and
(b) actual charges for:
1) filing fees, court reporter fees, service of process fees and similar expenses;
2) the services of expert witnesses;
3) any study, analysis, report, test or project reasonably necessary for the preparation of the party's case; and
4) fees and costs paid or incurred for the services of attorneys or certified public accountants in connection with the proceeding.
C. For purposes of this section:
(1) the medicaid provider or subcontractor is the prevailing party if it has:
(a) substantially prevailed with respect to the amount in controversy; or
(b) substantially prevailed with respect to most of the issues involved in the case or the most significant issue or set of issues involved in the case;
(2) the medicaid provider or subcontractor shall not be treated as the prevailing party if the hearing officer finds that the position of the department in the proceeding was based upon a reasonable application of the law to the facts of the case. For purposes of this paragraph, the position of the department shall be presumed not to be based upon a reasonable application of the law to the facts of the case if:
(a) the department did not follow its own rules or procedures in making a preliminary finding or final determination of overpayment; or
(b) the department's preliminary finding or final determination of overpayment giving rise to the proceeding was not supported by substantial evidence at the time such finding or determination was made; and
(3) the determination of whether the medicaid provider or subcontractor is the prevailing party and the amount of reasonable administrative costs or reasonable litigation costs shall be made:
(a) by agreement of the parties;
(b) in an expedited adjudicatory proceeding, by the hearing officer; or
(c) in a court proceeding, by the court.
D. A decision or order granting or denying in whole or in part an award for reasonable administrative costs pursuant to Subsection A of this section by the hearing officer shall be reviewable in the same manner as other decisions of the administrative hearings office. An order granting or denying in whole or in part an award for reasonable litigation costs pursuant to Subsection A of this section in a court proceeding may be incorporated as a part of the decision or judgment in the court proceeding and shall be subject to appeal in the same manner as the decision or judgment.
E. No agreement for or award of reasonable administrative costs or reasonable litigation costs in any expedited adjudicatory or court proceeding pursuant to Subsection A of this section shall exceed the lesser of thirty percent of the amount of the settlement or judgment or one hundred thousand dollars ($100,000). A medicaid provider or subcontractor awarded administrative or litigation costs pursuant to this section may not receive an award of attorney fees pursuant to any other statutory provision.
F. Interest on amounts owed to a prevailing medicaid provider or subcontractor shall accrue and be paid at the rate of one and one-half percent a month on the amount of a:
(1) clean claim electronically submitted by the medicaid provider or subcontractor and not paid within thirty days of receipt;
(2) clean claim manually submitted by the medicaid provider or subcontractor and not paid within forty-five days of receipt; or
(3) claim for which additional information was necessary to substantiate the claim and not paid within sixty days of receipt of such additional information.

NMS § 27-11-17

Added by 2019, c. 215,s. 15, eff. 1/1/2020.