HB 4 would allow the state to keep healthcare coverage affordable, while Congress allows marketplace insurance to skyrocket and federal cuts kick New Mexicans off Medicaid
Santa Fe, N.M. – Today, the New Mexico House of Representatives passed House Bill 4, which would increase distributions to the state's Healthcare Affordability Fund so the legislature can continue to keep healthcare coverage affordable for New Mexicans. The bill passed by a vote of 48-19 and now heads to the Senate.
HB 4 would support the extension of state-level subsidies for health insurance purchased through the Affordable Care Act marketplace, filling the gap left by federal tax credits that Congressional Republicans have allowed to expire. It will also help the state prepare for the impact of federal Medicaid cuts set to take full effect next year, which are expected to cause as many as 100,000 New Mexicans to lose their health insurance coverage.
"HB 4 is one of the most significant affordability bills the legislature will hear this year. The Healthcare Affordability Fund has been our state's lifeline to keep insurance in reach for families on the private market. It's why enrollment is growing in New Mexico while it collapses elsewhere in the country," said House Majority Leader Reena Szczepanski (D-Santa Fe). "It's through this fund that we were able to prevent New Mexicans from seeing their premiums double or triple this year when federal tax credits ended. As the federal government pulls back its support for American healthcare, it's absolutely critical that we support this fund."
Currently, New Mexico is the only state in the nation that has been able to fully backfill the lapsed federal subsidies to keep marketplace health insurance premiums affordable.
Since the Affordable Care Act took effect in 2014, the number of New Mexicans without health insurance hasdecreased by nearly 50%. While many states saw declining enrollment in Affordable Care Act plans since federal subsidies expired, New Mexico has continued to see record enrollment in BeWell, the state's insurance marketplace, thanks to legislative efforts to keep premiums affordable.
In 2021, state lawmakers created the Healthcare Affordability Fund by instituting a small surcharge on health insurance companies to proactively and directly lower healthcare costs for New Mexicans. Currently, 55% of the funds from the state's surcharge on health insurance companies are distributed to the Affordability Fund. HB 4 increases the distribution to the Fund to 80% in FY28 and 100% in FY29. The bill does not increase the surcharge – it just changes the amount of revenue distributed to the Affordability Fund.
HB 4 is also sponsored by Representative Liz Thomson (D-Albuquerque). It is a key piece of House Democrats' wide-ranging platform to make healthcare more affordable for New Mexicans. House Democrats are also pushing forward legislation and investments to expand access to care, recruit and retain providers, and make targeted changes to the state's medical malpractice laws to protect both patients and healthcare practitioners.
A select list of House Democrats' key healthcare priorities is below.
The Roundhouse will be open to the public for the entirety of this year's 30-day session. Members of the public can also view floor sessions and committee meetings on the New Mexico Legislature's Webcasts tab, and provide comment via phone or Zoom as directed on the daily schedule.
Select Healthcare Priorities
A non-comprehensive list of healthcare investments and legislation introduced by House Democrats this session includes:
Lowering out-of-pocket healthcare costs by expanding the Healthcare Affordability Fund, allowing the state to continue keeping marketplace insurance premiums affordable for working families (HB 4*, HB 2*)
Decreasing health insurance costs for public school teachers and staff, so they can keep more of their hard-earned money (HB 47)*
Growing a strong healthcare workforce by doubling the size of the UNM Medical School (HB 2)*
Creating a licensure pathway for qualified international physicians (HB 127)*
Investing heavily in provider recruitment and retention (HB 68), including expanding the state's loan repayment program (HB 2*), offsetting the cost of training for residents, and expanding the Rural Healthcare Practitioner Tax Credit (HB 142)
Making targeted changes to medical malpractice laws to improve the climate for doctors and providers (HB 99, HB 195, HB 15)
Creating a personal income tax credit for healthcare providers mentoring aspiring students in their field (HB 90)
Improving access to healthcare by joining interstate medical compacts
HB 10: Physician Assistant Interstate Compact*
HB 11: Audiology and Speech-Language Pathology Compact*
HB 12: Physical Therapy Licensure Compact*
HB 13: Occupational Therapy Licensure Compact*
HB 14: Dental and Dentist Hygienist Compact*
HB 31: EMS Personnel Licensure Interstate Compact*
HB 32: Counseling Licensure Compact*
HB 33: Psychology Interjurisdictional Compact*
HB 50: Social Work Licensure Interstate Compact*
SB 1: Interstate Medical Licensure Compact Act*
