SANTA FE, NM – Health insurance enrollment has increased 17% in New Mexico thanks to the Health Care Affordability Fund, which lowers premiums and out-of-pocket costs for people who get coverage through BeWell, New Mexico’s Health Insurance Marketplace.
Across the country, the loss of enhanced federal subsidies has driven up health insurance costs and contributed to more than 1 million people losing coverage. In New Mexico, enrollment trends are moving in the opposite direction.
This enrollment increase, the largest growth rate in the nation, is driven by New Mexico’s Health Care Affordability Fund, which has helped keep premiums and out-of-pocket costs low despite federal subsidy reductions. The fund helps offset the loss of federal tax credits and maintains affordable coverage options for New Mexicans.
Affordable coverage reduces long-term health care costs by ensuring people can access preventive services and early treatment, rather than relying on expensive emergency care.
“Affordability is a top priority in New Mexico,” said New Mexico Governor Michelle Lujan Grisham. “The results speak for themselves – people urgently need affordable health care. New Mexico is proving that it is possible, even in the face of Congress’s failure to extend these tax credits.”
According to national reports, people are switching to high-deductible plans just to stay covered. Data from to the nonpartisan research group KFF shows the average deductible for these plans is $7,476. When deductibles are expensive, it creates a financial barrier to getting health care. Again, New Mexico has bucked the national trend. Enrollment in high-deductible Bronze plans dropped from 3.4% to 3.1% and enrollment increased in Turquoise Plans, which offer the lowest out-of-pocket costs.
“Health insurance should protect people against medical debt, not cause it,” said Health Care Authority Cabinet Secretary Kari Armijo. “The Health Care Affordability Fund is not only helping New Mexicans stay covered but is shielding working families from massive costs when they use care.”
To ensure ongoing funding that will protect coverage in the face of federal cuts, House Majority Leader Reena Szczepanski introduced House Bill 4. The bill increases the revenue distributed to the Health Care Affordability Fund.
“When it comes to family budgets across our state, House Bill 4 is one of the most critical bills we will hear this session, protecting New Mexicans from skyrocketing health insurance costs and keeping the coverage they need,” said House Majority Leader Reena Szczepanski. “This legislation ensures New Mexico families don’t lose health care coverage because of decisions made far outside our state. We have bipartisan support to keep care affordable, stabilize our health system, and put people first with this bill.”
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About the New Mexico Health Care Authority
The New Mexico Health Care Authority connects New Mexicans to the care and support they need to live healthy, full lives. The agency administers Medicaid, the Supplemental Nutrition Assistance Program (SNAP), the Low-Income Home Energy Assistance Program (LIHEAP), cash assistance, child support services, and behavioral health care across the state. HCA also oversees the State Health Benefits program for state employees and manages the Health Care Affordability Fund to help make coverage more affordable for working families. The agency licenses health care facilities, investigates complaints, and ensures providers deliver safe, high-quality care. In addition, HCA supports individuals with intellectual and developmental disabilities through a variety of home and community-based programs that protect health, safety, and human rights.