New Mexico Takes Bold Steps to Protect Residents from Rising Healthcare Costs

This week, New Mexico’s state Legislature approved a new bill aimed at easing the burden of rising health insurance costs for residents. House Bill 2, which received bipartisan support, addresses the loss of Biden-era tax credits that made insurance under the Affordable Care Act (ACA) more affordable for many families. If Congress does not act by the end of the year, these tax credits will disappear.

Once signed by Governor Michelle Lujan Grisham, the bill will take effect immediately, just ahead of the health insurance renewal notices scheduled for November 1. House Majority Leader Reena Szczepanski emphasized the urgency, noting that families are anxious about looming premium hikes.

Without these tax credits, New Mexico residents could face some of the steepest increases in ACA premiums nationwide. An analysis from the Kaiser Family Foundation reveals an average rise of 35.7%. For example, a couple in Albuquerque nearing retirement, earning $84,600 a year, could see their monthly premiums soar by 311% to a staggering $2,462—about 35% of their income. However, with the new bill, their costs could drop back to around $600.

The BeWell marketplace is where New Mexicans, who do not qualify for Medicaid or Medicare, can purchase ACA insurance. It primarily serves middle-class families. Data from KFF shows that nearly half of the adults using the marketplace are small business owners or self-employed.

Currently, about 75,000 New Mexicans buy insurance through BeWell, and roughly 6,500 are affected by the impending loss of federal premium assistance. Szczepanski noted that without help, some people might have to drop their coverage due to costs.

The ongoing debate in Congress over these tax credits has implications for the federal government shutdown, underscoring the urgency of the issue. New Mexico stands out as one of the few states taking proactive steps to mitigate the impact of the expired credits, planning to allocate around $17 million from the Health Care Affordability Fund for the subsidies. While some legislators voiced concerns about this spending, others, like Senator Antoinette Sedillo Lopez, argued that maintaining health insurance is ultimately more economical than emergency care later on.

The bill, which received a clear majority in both the House (49-13) and Senate (34-3), is seen as a crucial step. However, lawmakers like Senate Minority Leader William Sharer called for more permanent solutions, expressing doubt that the current bill addresses the state’s healthcare challenges adequately.

Historical context offers insight here, as many states have faced similar issues with changing healthcare policies over the years. As the national conversation continues about the future of healthcare in the U.S., New Mexico’s decision to act reflects a growing concern over access and affordability. As noted by experts, addressing health insurance costs is not just about immediate relief but also about the long-term well-being of families and the financial stability of the healthcare system.

Overall, while this bill provides a temporary relief, lawmakers plan to continue exploring lasting solutions in the next session.

For more information on this topic, you can check reliable sources like the Kaiser Family Foundation and follow updates in local news outlets.

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