SANTA FE, New Mexico — The House of Representatives of New Mexico has approved House Bill 4 on a 48-19 bipartisan vote. The measure aims to shield residents from losing health coverage amid sweeping federal cuts.
HB 4 increases revenue for New Mexico’s Health Care Affordability Fund (HCAF) to keep insurance premiums and out-of-pocket exspenses affordable for working families and small businesses. Reps. Reena Szczepanski and Liz Thomson sponsored the bill.
Governor Michelle Lujan Grisham said the legislation responds to federal actions last year that rolled back enhanced premium tax credits and slashed Medicaid funding.
“New Mexico is not going to stand by while Washington decisions threaten health care access for our families,” Lujan Grisham said.
The measure, she said, aims to protect coverage and ensure New Mexicans can continue accessing health care.
$366 million for affordability
Next year’s executive budget recommends the allocation of $366 million for health care affordability programs. State officials estimate the investment could protect coverage for up to 46,600 individuals and reduce health care costs for some 122,000 people statewide.
Szczepanski, the House majority leader, said the measure is one of the most critical measures of the session. The lawmaker said it would stabilize health care system and save families from losing insurance due to federal government’s decision.
Enrollment rises despite national decline
The measure comes as New Mexico bucks a national trend of declining health insurance enrollment.
Data show a statewide enrollment climbed by 17 percent. The number defied a natonwide decline due to higher premiums and coverage losses following federal subsidy rollback.
National figures from the Kaiser Family Foundation indicate that many Americans are being forced into high-deductible plans as health care costs rise. The average deductible reaches $7,476 discouraging most Americans from seeking medical care.
In contrast, New Mexico has seen a shift from high-deductible coverage. State records showed enrollment in high-deductible Bronze plans dropped to 3.1 percent from 3.4 percent. At the same time, more residents signed up for Turquoise Plans, which offer the lowest out-of-pocket costs in the state’s insurance marketplace.
State officials credit the Health Care Affordability Fund and related reforms with cushioning the impact of federal cuts.