Committee advances bill to dedicate insurance surtax revenue to Health Care Affordability Fund

Leader Sapanski introduced House Bill 4 to send 100% of the existing surtax on health insurers to the Health Care Affordability Fund, saying the change would sustain premium assistance that makes private coverage affordable for New Mexico families and providers. "This fund has been a tremendous success story," Sapanski said, noting recent record enrollment in the state marketplace.

Secretary Carrie Armijo of the Health Care Authority warned that federal changes in HR 1 would reduce federal subsidies and that without state action "more than 46,000 New Mexicans are at imminent risk of losing their health care coverage." Be Well marketplace officials and patient-advocacy groups testified in support: Sarah Cloutier reported roughly 84,000 enrollees with about 92% receiving some financial assistance and an average state subsidy of about $180 per member per month.

Members pressed the sponsor and agency officials on budget impacts and contingency planning. Representative Jones cited a projected reduction to the general fund of roughly $813,500,000 over four years and asked how the Legislature would replace those revenues; sponsor and the secretary said appropriations committees are engaged and contingency language would prioritize federal subsidies if reinstated. Minority Whip Martinez said he supported assistance but urged addressing insurance-pricing drivers rather than repeatedly "throwing money at the problem."

The committee moved a due-pass motion and recorded a roll call: Representatives Anaya, Kates, E. Chavez, N. Chavez, Ferrari, Jones, Vice Chair Herndon and the Chair voted yes; Representatives Martinez and Sena Cortez voted no. By a vote of 8 to 2, the committee gave HB4 a due pass, advancing the bill to the next stage.

The committee hearing record shows strong stakeholder support and technical questions for budget and contingency language; next steps are committee amendments in appropriations and final floor consideration.