House Passes Legislation to Protect Affordable Healthcare Coverage for New Mexicans

Santa Fe, N.M. – Tonight, the House of Representatives passed legislation by a vote of 49 -13 to address healthcare premium costs that are slated to skyrocket at the end of the year. 

Enhanced Premium Tax Credits are federal tax credits that help lower costs for individuals purchasing health insurance through the Affordable Care Act marketplace. Because Congress has not renewed these tax credits, they are set to expire on December 31, 2025. This change is expected to increase the out-of-pocket costs for marketplace health insurance by an average of over 75%. 

For example, the New Mexico Health Care Authority projects that a couple in their mid-fifties with one child living in Chaves County making $110,000 and currently paying $780 a month for coverage, could face $3,137 in monthly premiums next year, which would amount to a $28,284 annual increase.

House Bill 2 authorizes the state’s Health Care Affordability Fund to provide subsidies that replace the federal tax credits and keep healthcare premiums affordable. The Special Session budget (House Bill 1) includes $17 million to support these subsidies. 

“Because healthcare costs are rising at the same time that Congress is allowing these critical Affordable Care Act tax credits to expire, New Mexicans are facing a one-two punch. For some families, these staggering cost increases will make it harder to put food on the table or pay rent,” said HB 2’s lead sponsor House Majority Floor Leader Reena Szczepanski (D-Santa Fe). “State lawmakers are stepping up in this special session to make sure healthcare remains within reach for our working families.”

Since the Affordable Care Act took effect in 2014, the number of New Mexicans without health insurance has decreased by nearly 50%. However, state officials have warned that 27,000 New Mexicans could lose health insurance if these tax credits are allowed to expire and the state does not take action. Additionally, looming federal funding cuts to Medicaid could cause 88,000 New Mexicans to lose their health insurance in the next two years.  

HB 2 now moves to the Senate. The legislation is also sponsored by Reps. Charlotte Little (D-Albuquerque) and Marian Matthews (D-Albuquerque), and Senators Carrie Hamblen (D-Las Cruces) and Heather Berghmans (D-Albuquerque). 

This bill contains an emergency clause and would go into effect immediately upon the Governor’s signature. 

Members of the public are welcome to attend floor sessions and committee meetings at the New Mexico Roundhouse, and can tune in virtually through the New Mexico Legislature’s Webcasts tab. Public comment can also be provided in-person, and via phone or Zoom as directed on the daily schedule.

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