Medigap bill passes Senate, heads to House

SANTA FE — The New Mexico Senate voted on Thursday to strengthen consumer protections for Medicare supplement insurance enrollees, sending Senate Bill 21 (SB 21) to the House in a bipartisan show of support.

The legislation, sponsored by Senators Rex Wilson (R), Pete Campos (D), Martin Hickey (D), Elizabeth Stefanics (D) and Representative Reena Szczepanski (D), unanimously passed the Senate on a 36-0 vote. It also received unanimous approval in both Senate House and Public Affairs and Senate, Tax, Business and Transportation Committees.

"Medicare should provide peace of mind, not uncertainty," said Emily Kaltenbach, Aging Department secretary. "This bill modernizes our Medigap protections and brings New Mexico in line with a growing number of states working to ensure Medicare beneficiaries have greater flexibility and security."

More than 70,000 New Mexico Medicare beneficiaries rely on Medicare supplement insurance (also referred to as Medigap) plans to help cover out-of-pocket costs such as deductibles, copayments and coinsurance. Without the ability to change plans, many enrollees can find themselves locked into coverage that no longer fits their medical or financial circumstances.

SB 21 helps address that gap by providing consumer protections while maintaining stability in the insurance market by allowing movement only to plans with equal or lesser benefits.

The bill would establish a "birthday rule" for Medigap beneficiaries, allowing them to switch to a plan with equal or lesser coverage around their birthday each year without being subject to medical underwriting. The policy is designed to give older adults greater flexibility to choose coverage that better meets their health needs while protecting them from being denied coverage due to pre-existing conditions.

SB 21 now heads to the House for consideration.