Governor, Rep. Armstrong introduce legislation to reduce cost of health insurance and medical expenses
SANTA FE, NM (STL.News) Gov. Michelle Lujan Grisham and Rep. Deborah Armstrong on Monday announced the introduction of legislation that establishes a new fund that will reduce the cost of health insurance and medical expenses for tens of thousands of working New Mexico families.
“Even before the pandemic, access to high-quality and affordable health care for every New Mexican was a non-negotiable priority of my administration,” Gov. Lujan Grisham said. “House Bill 122 will expand coverage for up to 23,000 uninsured New Mexicans in its first year and drive down premiums for tens of thousands of residents who receive coverage through the state exchange. This is a real difference-maker for New Mexicans.”
House Bill 122, sponsored by Rep. Armstrong, creates the Health Care Affordability Fund, which will be financed by replacing a recently phased-out federal fee on insurance companies with a state version by updating New Mexico’s existing surtax on insurance companies from 1 percent to 3.75 percent. These are fees that insurance companies paid the federal government for many years and will generate about $160 million in new revenue for the state annually.