New Mexico's insurance exchange sees record enrollment ahead of Jan. 15 deadline

Despite the 2025 expiration of some federal health insurance subsidies, more New Mexico residents than ever are signing up for medical and dental coverage through BeWell, the state’s health insurance exchange.

But time is running out to seek coverage: Open enrollment — when people can sign up for coverage through the marketplace — ends Jan. 15.

As of Monday, more than 81,000 New Mexicans — including more than 9,000 new customers — had enrolled in medical or dental insurance through BeWell, established as part of the federal Affordable Care Act, since Nov. 1, data from the exchange shows. That figure outpaces the record set by open enrollment in 2025 by nearly 10,000 consumers — with more than a week left in the enrollment period.

“It’s the third year in a row that we’ve had record enrollment, so it feels great to know that so many more New Mexicans are getting the help they need with affordable and reliable health care,” said Alex Sanchez, BeWell’s chief experience officer.

The milestone comes after the Dec. 31 expiration of Enhanced Premium Tax Credits, a financial assistance program that lowered out-of-pocket premium costs for marketplace enrollees, including middle-income households making more than 400% of the federal poverty level — the equivalent of nearly $130,000 per year for a family of four.

A congressional showdown over the tax credit’s expiration drove the longest federal government shutdown in U.S. history, which lasted throughout October and early November.

New Mexicans who get their insurance through the marketplace will be spared the worst of rising health insurance costs in 2026: The New Mexico Legislature during its regular session in January 2025 and in an October special session allocated around $40 million to fill in for the expiring subsidies in the first half of 2026.

Health insurance enrollment

But that doesn’t mean costs won’t rise at all for those customers. Individual plans — sold on and off the state health insurance marketplace as part of the Affordable Care Act — will see an average rate increase of nearly 36% in 2026, the New Mexico Office of the Superintendent of Insurance announced in August.

Some New Mexicans with Affordable Care Act coverage will still face an increase in health insurance premiums because of those rising costs, Sanchez said — though premiums through BeWell remain low, with more than half of people enrolled through the marketplace paying less than $10 per month for coverage.

Legislation to maintain the state-funded insurance subsidies is expected to come before lawmakers during this year’s legislative session, which begins Jan. 20. The state Health Care Authority is requesting $103.7 million to extend those subsidies, and Gov. Michelle Lujan Grisham’s budget recommendation for fiscal year 2027 includes an $81.1 million line item to reduce health care premiums for those who purchase coverage through the exchange.

“We feel very confident that New Mexicans are going to continue to see some type of subsidy replacement from the state,” Sanchez said. “When you look at the special session and how quickly legislators turned this around and worked with the governor, there is a commitment from our state elected officials to affordable and reliable health insurance.”

The state health insurance subsidies made a difference for Garrett Peck.

The Santa Fe author, historian and tour guide is self-employed, meaning he can’t qualify for health insurance through an employer. Nearly 58 years old, Peck is still seven years away from qualifying for Medicare, and his income is too high to qualify for Medicaid.

State subsidies will reduce Peck’s insurance premium by $397 per month through June.

“I’m very grateful to the Legislature and to the governor for doing this, because otherwise ... my premium was going to be $1,130 — and it only goes up from here,” he said.

As policies change — and as he approaches Medicare eligibility — Peck said he’ll take on the insurance market “one year at a time.”

“You cannot not have insurance; you’ve got to do it — which means that you sacrifice a bunch of other stuff,” he said.

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