The new law aimed at reducing healthcare costs for state employees in New Mexico is set to take effect on July 1. The legislation, driven by the signing of SB 376, adjusts the state's contribution towards employee health insurance premiums and addresses financial challenges within the State Health Benefits Plan.
Kari Armijo, secretary of the New Mexico Health Care Authority, remarked on the law's significance by stating, "This is a major win for our state workforce," and added, “With this new law, we’re lowering health coverage costs for thousands of state workers and protecting the sustainability of the program for years to come.”
The legislative effort increases the state's share of employee health insurance costs, which is currently the lowest in the nation at 65%. The law is also designed to eliminate the health benefits program's budget shortfall, projecting millions in general fund savings for the state in fiscal year 2026.
Another significant provision in the bill offers premium assistance to eligible National Guard members, aiming to reduce uninsured rates by making coverage more affordable. The bill's passage saw robust bipartisan support, evidenced by the 36-2 vote in the Senate and 52-13 vote in the House.
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