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House committee OKs health insurance premium tax hike
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The state House of Representatives is set to consider legislation that would create a fund to help offset the costs of health insurance premiums for lower-income people who purchase individual policies through New Mexico’s Obama-era insurance exchange. Proponents of House Bill 122 — which passed the House Taxation and Revenue Committee on a 7-2 vote Wednesday — say it will widen access to coverage for self-employed workers and others who earn too much to qualify for Medicaid but struggle to pay premiums on their own. Opponents argue, however, the measure ultimately would shift the costs to small businesses and their employees, who would see their own health insurance rates rise to cover a higher tax on their provider. HB 122, sponsored by Reps. Deborah Armstrong and Javier Martinez, both Democrats from Albuquerque, would increase a current 1 percent surtax on health insurance premiums to 2.75 percent.