New Mexico will use state funds to shield residents from health insurance premium increases after Congress failed to extend Affordable Care Act tax credits that expired Dec. 31.
The state’s Health Care Affordability Fund will provide $17.3 million to reduce premiums and cost-sharing through June 30 for New Mexicans enrolled in BeWell, the state’s health insurance marketplace. Gov. Michelle Lujan Grisham and state lawmakers approved the emergency funding during an October special legislative session.
Lujan Grisham’s budget proposal for fiscal years 2026-2027 seeks additional funding to extend the assistance beyond June if Congress does not act.
“The Republican-controlled Congress is forcing families to endure a massive premium hike in the new year, and New Mexico won’t stand for it,” Lujan Grisham said in a statement. She criticized congressional Republicans for choosing “to placate President Trump instead of protecting the people they represent.”
National experts estimate the expired tax credits could lead to average annual premium increases of $1,500 per person. Without state intervention, approximately 27,100 New Mexicans could lose marketplace coverage, according to state projections.
New Mexico established the Health Care Affordability Fund in 2021 to reduce premiums and out-of-pocket costs for eligible residents purchasing coverage through BeWell.
Kari Armijo, cabinet secretary of the New Mexico Health Care Authority, said the state funding would “blunt the immediate shock families are about to feel” but emphasized that “state action is not a substitute for federal responsibility.”
Open enrollment for BeWell coverage continues through Jan. 15. Residents can access free enrollment assistance by calling 833-862-3935 or visiting BeWellnm.com.