HEALTH INSURANCE PREMIUM AFFORDABILITY GROUP

HM052

HOUSE MEMORIAL 52

57
th legislature
- STATE OF NEW MEXICO -
second session
, 2026

INTRODUCED BY

Nicole Chavez

A MEMORIAL

REQUESTING THE OFFICE OF SUPERINTENDENT OF INSURANCE, IN
CONSULTATION WITH THE HEALTH CARE AUTHORITY, TO CREATE A HEALTH
INSURANCE PREMIUM AFFORDABILITY STUDY GROUP.

WHEREAS, New Mexico's working families and small employers
depend on affordable and reliable health insurance coverage to
support economic security, workforce participation and strong
communities; and

WHEREAS, working families and small employers face unique
challenges regarding health benefits because they have less
purchasing power and fewer options to absorb premium increases
than larger employers; and

WHEREAS, national research surveying small business owners
has found that the cost of health insurance is a severe problem
for small business owners and is considered critical by
approximately forty-one percent of respondents; and

WHEREAS, facing unaffordable increases, some small
employers have reduced benefits, delayed offering coverage or
been priced out of offering insurance altogether, making it
harder to recruit and retain employees; and

WHEREAS, premium affordability challenges are often most
directly felt by small employers and by individuals and
families purchasing coverage in the individual market; and

WHEREAS, New Mexico policymakers consider legislation that
may affect health coverage requirements and health insurance
affordability, including proposals that may change covered
benefits, cost-sharing requirements and premium levels; and

WHEREAS, legislators would benefit from improved tools and
data to evaluate the expected impacts of proposed statutory
changes on health insurance premiums, consumer out-of-pocket
costs, utilization and public costs; and

WHEREAS, health insurance premiums for fully insured
coverage may reflect not only health care claims costs and
administrative expenses but also state-imposed taxes, fees and
assessments; and

WHEREAS, New Mexico would benefit from a structured, data-driven and bipartisan approach to studying premium cost drivers
and options to improve affordability for small employers and
working families;

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF
REPRESENTATIVES OF THE STATE OF NEW MEXICO that the office of
superintendent of insurance, in consultation with the health
care authority, be requested to create a health insurance
premium affordability study group to study rising health
insurance premiums and cost drivers in New Mexico's fully
insured individual and insured group health insurance markets;
and

BE IT FURTHER RESOLVED that the office of superintendent
of insurance, in consultation with the health care authority,
be requested to direct that the study group be composed of a
diverse group of members representing stakeholders affected by
rising health insurance premiums and out-of-pocket costs in New
Mexico's fully insured individual and small group markets,
including:

A. four members who represent the interests of
small employers and working families affected by rising
premiums and out-of-pocket costs;

B. four members who represent the interests of the
business and employer community;

C. four members who represent the health insurance
and health plan industry, including at least one licensed
health insurance agent or broker experienced in the fully
insured individual and small group markets;

D. the superintendent of insurance or the
superintendent's designee; and

E. the chief executive officer of the New Mexico
health insurance exchange or the chief executive officer's
designee; and

BE IT FURTHER RESOLVED that the study group be requested
to conduct meetings and solicit input from additional
stakeholders and subject matter experts as determined necessary
by the study group, including health care providers, consumer
advocates, actuaries, economists and other experts in health
care finance and insurance markets; and

BE IT FURTHER RESOLVED that the study group be requested
to study, evaluate and make findings and recommendations
regarding:

A. the primary drivers of premium changes in New
Mexico's fully insured individual and small group health
insurance markets, including trends in health care claims
costs, utilization, prescription drug costs, administrative
expenses and other premium components;

B. the affordability impacts of rising premiums and
out-of-pocket costs on small employers and working families,
including impacts on the ability of small employers to offer
coverage and remain competitive in recruiting and retaining
employees;

C. the extent to which state-imposed premium taxes,
fees and assessments applicable to fully insured health
insurance coverage affect premiums in the individual and small
group markets, including comparisons with surrounding and peer
states;

D. options to improve affordability and promote
market competitiveness while protecting access to quality
health care, including consideration of current benefit
mandates, coverage requirements and regulatory factors that may
contribute to premium growth;

E. tools, best practices and processes, including a
structured, evidence-based framework, to assist legislators in
obtaining objective, data-driven estimates of the drivers that
may affect health insurance benefits, coverage requirements,
cost-sharing requirements or premiums; and

F. recommendations for improving transparency for
small employers and consumers regarding premium cost drivers
and the expected impacts of statutory and regulatory changes;
and

BE IT FURTHER RESOLVED that the study group be requested
to submit a written report of its findings and recommendations
to the legislative finance committee and legislative health and
human services committee by October 1, 2026; and

BE IT FURTHER RESOLVED that copies of this memorial be
transmitted to the superintendent of insurance, the chief
executive officer of the New Mexico health insurance exchange,
the secretary of health care authority, the secretary of
health, the president pro tempore of the senate and the speaker
of the house of representatives.

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