SANTA FE, N.M. — New Mexico Together for Healthcare (NMT4HC), a statewide coalition of families, providers, and community organizations, celebrates the final legislative passage of House Bill 4, sending the measure to the Governor’s desk and securing the long-term sustainability of the Health Care Affordability Fund (HCAF).
HB 4 strengthens and gradually increases the share of health insurance premium surtax revenue directed to the Health Care Affordability Fund (HCAF) — New Mexico’s primary tool for keeping coverage affordable as federal premium tax credits expire and Medicaid cuts take effect.
Under the amended bill, surtax revenue distribution to the HCAF will increase over time:
- FY27: 55% (current level)
- FY28: 80%
- FY29: 95%
- Starting in FY 29, five percent of the health insurance premiums surtax revenue will be directed to the Behavioral Health Program Fund (BHPF), with any unspent BHPF dollars reverting back to the Health Care Affordability Fund.
Alongside major investments in HB 2 that funded most of the Governor’s request, HB 4 fortifies New Mexico’s strongest defense against federal health care cuts. Together, these actions could protect coverage for up to 46,600 residents and reduce costs for as many as 122,000 people statewide.
“No New Mexican should lose their health coverage because of paperwork, politics, or federal cuts,” said Abuko D. Estrada, Healthcare Director at the New Mexico Center on Law and Poverty. “Coverage loss is entirely preventable. The Health Care Affordability Fund was created for moments like this— and by strengthening it through HB 2 and HB 4, New Mexico is choosing stability, dignity, and prevention over crisis.”
Throughout the session, NMT4HC amplified the stories of families already experiencing coverage churn caused by federal paperwork barriers, shortened deadlines, and subsidy cuts.
- In Las Cruces, Renée Beltran described how a single month of Medicaid loss due to paperwork cost her family more than $600 out-of-pocket — while her child’s medication costs more than $6,000 per month without coverage.
- In Anthony, Iliana Perez and Michael Jason Baeza shared how losing Medicaid during a renewal transition forced them into higher-cost coverage and delayed care.
- In Farmington, Mabel Gonzalez described the “Medicaid cliff,” where earning slightly more income can push working parents off coverage without a smooth transition to affordable coverage.
- In Albuquerque, nurse Carmen Meyer saw her premiums jump to nearly 17% of her income — more than her mortgage — forcing her to question how she would cover basic household bills. Providers like Dr. Bill Wagner, Dr. Barnes, Dr. McHarney-Brown and others have seen how this strain impacts families across the state every day.
“These stories show that coverage continuity is a policy decision — not a personal failure,” Estrada said. “And stabilizing coverage is a harm reduction and cost saving strategy.”Providers warned that instability harms the financial stability of clinics and hospitals, which hurts entire communities.
“With more than 30 years of experience, I have seen firsthand what happens when coverage shrinks,” said Dr. Caryn McHarney-Brown of Albuquerque. “Preserving affordable coverage through Medicaid and BeWell is the most responsible, compassionate path forward — for families, providers, and New Mexico’s healthcare system as a whole.”
Rural residents emphasized that coverage stability is directly tied to access.
“When coverage becomes unstable, rural communities lose services first — and they don’t come back,” said Leroy Tso of Gallup and the Navajo Nation.
Behavioral health providers echoed that prevention is more humane and more cost-effective than crisis response.
“When coverage is unstable, families suffer and clinics struggle,” said Dr. Bill Wagner, LCSW, PhD, founder of Centro Sávila. “If we want a healthier New Mexico — and a stronger economy — the path is clear: protect access, invest in prevention, and maximize every tool available to keep people covered.”
HB 4 was sponsored by House Majority Leader Reena Szczepanski, alongside Representatives Elizabeth Thomson, Joseph Hernandez, and Anita Gonzales, and Sen. Roberto “Bobby” J. Gonzales.
Advocates emphasized that the Legislature’s passage builds on the intent of the Fund’s creation in 2021: to channel money generated within the health care system back into lowering costs for New Mexicans.
“Coverage loss is a policy choice,” Juliana Hernandez, Field Organizer with Strong Families, said. “The federal government may be cutting people off of care, but New Mexico decided we don’t have to. We defended what we have. Now, we continue building toward a healthcare system that works for everyone — where stability, affordability, and access are not temporary or threatened by outside attacks.”