The New Mexico Health Care Authority is advocating for Senate Bill 376, which aims to reduce state employee health insurance contributions by 46.2%, eliminate the budget shortfall of the state health benefits program, and save $19.1 million from the state's general fund.
Senate Bill 376, sponsored by Senator George Muñoz and Senator Liz Stefanics, is set for a hearing in the Senate Tax, Business and Transportation Committee on Tuesday at 1:30 p.m., in Room 321 at the Roundhouse.
"This legislation fixes long-standing issues in the state employee health plan while reducing employee premiums by 46.2 percent," stated Governor Michelle Lujan Grisham. "It has been just half a year since the new agency launched and the Health Care Authority is bringing innovative ideas to make health care more affordable and set the state’s health plan on a fiscally responsible path."
The bill addresses several challenges facing the New Mexico State Health Benefits plan, which provides coverage for state, local, and municipal employees but faces a structural budget deficit. Currently, New Mexico contributes only 65% of employee healthcare premiums—the lowest in the nation. The bill also aims to assist National Guard members who face high uninsured rates due to coverage costs.
"New Mexico state employees deserve health care for themselves and their families," said Senate Finance Committee Chairman George Muñoz. "This bill fixes the budget shortfall the state health benefits plan has faced for years and shows state employees we support their health and well-being."
"It is important to provide high-quality health coverage to our state employees," added Senator Liz Stefanics. "The reforms in SB 376 will improve coverage affordability for state workers so that we can attract and retain top talent."
If enacted, SB 376 would increase state contributions to cover 80% of insurance costs for qualifying employees; use funds to help lower-income employees with premiums; offer premium support to eligible National Guard members; eliminate the structural budget deficit; require actuarially sound rate submissions in future budgets; and implement cost-saving initiatives without compromising patient care.
"In recent years, National Guard members have deployed across New Mexico during multiple emergencies," noted Maj. General Miguel Aguilar. "This bill ensures these critical responding soldiers have access to healthcare." He expressed gratitude towards Gov. Lujan Grisham and sponsors for addressing this issue.
