New Mexico starts 2022 with a series new laws approved by Gov. Michelle Lujan Grisham and the state’s Democratic-led Legislature.

One law will increase access to health insurance and another ends court fines against juveniles that are viewed as “counterproductive,” KRQE reported.

“One bill approved by Gov. Grisham and the legislature [establishes] a 2.75% surtax on health insurance premiums,” KRQE wrote.

Insurance Superintendent Russell Toal told KRQE the increase will help approximately 85,000 residents with expiring Medicaid coverage for the COVID-19 pandemic.

Starting Jan. 1, the new tax will raise the surtax to 2.75% from 1%.

The revenue from the tax will be used to “underwrite health exchange insurance offerings for low- and moderate-income individuals, along with employees at small businesses, starting in 2023,” KRQE reported.

Under a new bill, the state will stop collecting a $10 fee for assigning a public defender to a minor and eliminate fines for possession of marijuana by a minor.

Insurance officials say 90% of the tax burden will fall on care organizations that provide Medicaid insurance instead of on the users of health insurance companies.

State Democrats and Republicans were worried about the tax increase because of its possible impact on businesses. However, 90% of the money that is collected from managed care organizations that provide Medicaid insurance, KRQE reported.