New Mexico Tackles Rising Health Insurance Premiums Amid Federal Changes

In the U.S., upcoming changes to federal legislation could lead to increased health insurance premiums for many consumers. A recent bill passed by the U.S. House of Representatives did not extend the Affordable Care Act (ACA) tax credits, set to expire at year's end. Without these credits, premiums are likely to rise significantly, impacting a large segment of the population.

New Mexico's Proactive Measures

New Mexico has proactively addressed this potential challenge through its Health Care Affordability Fund, established in 2021. This initiative aims to mitigate premium increases for residents enrolled in ACA plans. With over $100 million currently available, this fund acts as a state-level complement to federal subsidies, stabilizing premium costs for the approximately 68,000 New Mexicans dependent on these tax credits.

State officials plan to use the fund fully by 2026 and seek an additional $130 million to maintain subsidies in 2027. While these efforts provide short-term relief, New Mexico's leaders emphasize the importance of federal involvement to address ongoing funding challenges and sustain long-term stability in the insurance market. This state-led strategy not only aids those purchasing health insurance through the New Mexico marketplace, BeWellNM, but also includes supplementary programs to manage additional out-of-pocket expenses.

New Mexico's approach underscores the potential for state-level innovation in health insurance affordability, while highlighting the necessity for broader federal action to secure long-term stability across the insurance industry.