NM fills gap after Congress lets ACA tax credits expire

New Mexico’s Health Care Affordability Fund will shield those enrolled in the BeWell health insurance marketplace from dramatic premium hikes following a failure by Congress to extend Affordable Care Act tax credits that expired Dec. 31.

In an October special legislative session, Gov. Mi- chelle Lujan Grisham and state lawmakers approved $17.3 million from the Health Care Affordability Fund to reduce premiums and cost sharing through June 30 for New Mexicans who purchase coverage through BeWell. Lujan Grisham’s FY 2026-27 budget proposal seeks additional funding to extend the assistance beyond June 30 if federal inaction continues, according to a news release.

“The Republican-controlled Congress is forcing families to endure a massive premium hike in the new year, and New Mexico won’t stand for it,” Lujan Grisham said. “We created the Health Care Affordability Fund for moments like this - when Washington fails to protect working families and the most vulnerable among us. Our congressional delegation fought hard to extend these subsidies, but Republicans who control Congress chose to placate President Trump instead of protecting the people they represent.”

National experts say the average annual premium increase could amount to $1,500 per person, the release stated. Without state assistance, 27,100 New Mexicans could lose marketplace coverage because of Republicans’ refusal to extend the Affordable Care Act tax credits. New Mexico created the Health Care Affordability Fund in 2021 to reduce premiums and out-of-pocket costs for eligible New Mexicans who seek health coverage through BeWell, among other affordability initiatives.

“The Health Care Authority’s job is to protect coverage for New Mexicans, and the Health Care Affordability Fund gives our state the ability to blunt the immediate shock families are about to feel,” said Kari Armijo, Cabinet secretary of the New Mexico Health Care Authority. “But let’s be clear: State action is not a substitute for federal responsibility. Congress created this cliff, and Congress can avoid it by extending enhanced premium tax credits so people in every state can keep coverage within reach. We urge immediate action to prevent families from having to choose between health care and rent, groceries or gas.”

BeWell open enrollment continues through Jan. 15. Free enrollment help is available through BeWell-certified assisters.

For help, call 833-8623935 or visit BeWellnm. com.