The House Health and Human Services Committee unanimously passed a bill that would ensure that 55% of the health insurance premium tax continues to go to the Affordable Care Fund. Sponsored by state Rep. Leena Szczepanski, D-Santa Fe, HB 7 would block the rate 55 percent. […]
The House Health and Human Services Committee unanimously passed a bill that would ensure that 55% of the health insurance premium tax continues to go to the Affordable Care Fund.
HB 7, sponsored by state Rep. Leena Szczepanski, D-Santa Fe, would prevent 55 percent of the health insurance premium surtax from being transferred to the state's general fund. Szczepanski said that because the Affordable Care Fund Creation Act was enacted in 2021 and the program funded by the 55% surtax did not exist in 2021, the original law would have allowed the fund to begin funding in fiscal year 2025. He said that the return of the property had been approved.
“This has resulted in significant affordability improvements for New Mexico consumers and small businesses. This has resulted in significant affordability improvements for New Mexico consumers and small businesses. “For New Mexicans, Be Well New Mexico Exchange has reduced consumer costs,” Szczepanski said.
If this bill is not enacted, the allocation of the surtax on health insurance premiums will drop to 30%. Szczepanski said the state's health exchange currently has more than 50,000 people registered, the highest enrollment in its history. He said the 55% distribution of tax dollars into the fund would save businesses $45 million in premiums, saving 6,000 businesses and 41,000 employees.
In response to a question from state Rep. Jennifer Jones (R-Deming) about how the program works, Szczepanski said that with a 55% allocation, small businesses that purchase private insurance through the state health care exchange will be able to He said he could give a 10% discount.
New Mexico Insurance Department Deputy Commissioner Colin Baillio told the committee that the discount will be made using federal funds from the federal government.
“This is about making the most of our country's money. It doesn't replace federal funding. All the money goes to the airlines so they can cover more people,” Baillio said. said.
The New Mexico Department of Insurance Commissioners administers this program.
After the 9-0 vote, the bill next goes to the House Appropriations Committee.
