SB 376 would cut premiums by 46%, eliminate the state health plan budget deficit and lower costs for some members of the National Guard
SANTA FE – The New Mexico Health Care Authority is urging lawmakers to support Senate Bill 376, a measure that would lower state employee health insurance contributions by 46.2%, eliminate the state health benefits program’s budget shortfall and save the state’s general fund $19.1 million.
SB 376, sponsored by Sen. George Muñoz and Sen. Liz Stefanics, is scheduled 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,” said Gov. 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 the table to make health care more affordable and set the state’s health plan on a fiscally responsible path.”
SB 376 addresses multiple challenges facing the New Mexico State Health Benefits plan. The plan, which provides health coverage for state, local and municipal employees, faces a structural budget deficit. The state contributes just 65% of employee healthcare premiums, which is the lowest in the nation. Additionally, National Guard members face a high uninsured rate due to health coverage cost, the bill aims to provide premium assistance to eligible members.
“New Mexico state employees deserve health care for themselves and their families,” said Senate Finance Committee Chairman George Muñoz, one of the bill’s sponsors. 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,” said Sen. Liz Stefanics, one of the bill’s sponsors. “The reforms in SB 376 will improve coverage affordability for state workers so that we can attract and retain top talent.”
If passed and funded, the bill will:
- Increase the state’s contributions to 80% of health insurance costs to all state employees who qualify for the state’s health plan.
- Use the Health Care Affordability Fund to cover employee share of premium for lower-income employees who make too much to qualify for Medicaid.
- Provide premium support to members of the National Guard who are eligible for TRICARE Select Reserve.
- Eliminate the State Health Benefits structural budget deficit.
- Require the HCA Secretary to submit actuarially sound rates in all future budget requests.
- Implement cost savings initiatives while protecting patients.
“In recent years, National Guard members have deployed across New Mexico to assist communities during multiple emergencies,” said Maj. General Miguel Aguilar, the adjutant general and secretary of Homeland Security and Emergency Management. “This bill ensures that these critical responding soldiers and Guard members have access to health care. The National Guard is ‘Always Ready, Always There’. This bill adds ‘always cared for’ for our most vulnerable members. Thank you to Gov. Lujan Grisham and the bill sponsors for taking on this incredibly important issue.”
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