HOUSE MEMORIAL 52

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Nicole Chavez

 

 

 

 

 

A MEMORIAL

REQUESTING THE OFFICE OF SUPERINTENDENT OF INSURANCE, IN CONSULTATION WITH THE HEALTH CARE AUTHORITY, TO CREATE A HEALTH INSURANCE PREMIUM AFFORDABILITY STUDY GROUP.

 

     WHEREAS, New Mexico's working families and small employers depend on affordable and reliable health insurance coverage to support economic security, workforce participation and strong communities; and

     WHEREAS, working families and small employers face unique challenges regarding health benefits because they have less purchasing power and fewer options to absorb premium increases than larger employers; and

     WHEREAS, national research surveying small business owners has found that the cost of health insurance is a severe problem for small business owners and is considered critical by approximately forty-one percent of respondents; and

     WHEREAS, facing unaffordable increases, some small employers have reduced benefits, delayed offering coverage or been priced out of offering insurance altogether, making it harder to recruit and retain employees; and

     WHEREAS, premium affordability challenges are often most directly felt by small employers and by individuals and families purchasing coverage in the individual market; and

     WHEREAS, New Mexico policymakers consider legislation that may affect health coverage requirements and health insurance affordability, including proposals that may change covered benefits, cost-sharing requirements and premium levels; and

     WHEREAS, legislators would benefit from improved tools and data to evaluate the expected impacts of proposed statutory changes on health insurance premiums, consumer out-of-pocket costs, utilization and public costs; and

     WHEREAS, health insurance premiums for fully insured coverage may reflect not only health care claims costs and administrative expenses but also state-imposed taxes, fees and assessments; and

     WHEREAS, New Mexico would benefit from a structured, data-driven and bipartisan approach to studying premium cost drivers and options to improve affordability for small employers and working families;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the office of superintendent of insurance, in consultation with the health care authority, be requested to create a health insurance premium affordability study group to study rising health insurance premiums and cost drivers in New Mexico's fully insured individual and insured group health insurance markets; and

     BE IT FURTHER RESOLVED that the office of superintendent of insurance, in consultation with the health care authority, be requested to direct that the study group be composed of a diverse group of members representing stakeholders affected by rising health insurance premiums and out-of-pocket costs in New Mexico's fully insured individual and small group markets, including:

          A. four members who represent the interests of small employers and working families affected by rising premiums and out-of-pocket costs;

          B. four members who represent the interests of the business and employer community;

          C. four members who represent the health insurance and health plan industry, including at least one licensed health insurance agent or broker experienced in the fully insured individual and small group markets;

          D. the superintendent of insurance or the superintendent's designee; and

          E. the chief executive officer of the New Mexico health insurance exchange or the chief executive officer's designee; and

     BE IT FURTHER RESOLVED that the study group be requested to conduct meetings and solicit input from additional stakeholders and subject matter experts as determined necessary by the study group, including health care providers, consumer advocates, actuaries, economists and other experts in health care finance and insurance markets; and

     BE IT FURTHER RESOLVED that the study group be requested to study, evaluate and make findings and recommendations regarding:

          A. the primary drivers of premium changes in New Mexico's fully insured individual and small group health insurance markets, including trends in health care claims costs, utilization, prescription drug costs, administrative expenses and other premium components;

          B. the affordability impacts of rising premiums and out-of-pocket costs on small employers and working families, including impacts on the ability of small employers to offer coverage and remain competitive in recruiting and retaining employees;

          C. the extent to which state-imposed premium taxes, fees and assessments applicable to fully insured health insurance coverage affect premiums in the individual and small group markets, including comparisons with surrounding and peer states;

          D. options to improve affordability and promote market competitiveness while protecting access to quality health care, including consideration of current benefit mandates, coverage requirements and regulatory factors that may contribute to premium growth;

          E. tools, best practices and processes, including a structured, evidence-based framework, to assist legislators in obtaining objective, data-driven estimates of the drivers that may affect health insurance benefits, coverage requirements, cost-sharing requirements or premiums; and

          F. recommendations for improving transparency for small employers and consumers regarding premium cost drivers and the expected impacts of statutory and regulatory changes; and

     BE IT FURTHER RESOLVED that the study group be requested to submit a written report of its findings and recommendations to the legislative finance committee and legislative health and human services committee by October 1, 2026; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the superintendent of insurance, the chief executive officer of the New Mexico health insurance exchange, the secretary of health care authority, the secretary of health, the president pro tempore of the senate and the speaker of the house of representatives.

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