New Mexico is taking steps to prepare for major changes to Medicaid driven by the 2025 "One Big Beautiful Bill Act."
At the urging of President Donald Trump, Republicans in Congress enacted the largest Medicaid cuts in history, with premiums for the average Affordable Care Act marketplace health insurance plans expected to rise by some 26% nationwide and nearly 36% in New Mexico. Now, lawmakers have passed a bill to increase revenues to the state's Health Care Affordability Fund, the primary tool used to keep premiums manageable for working families and small businesses.
Mónica Otero, policy analyst for the group New Mexico Voices for Children, explained the measure's benefits.
"Their low-cost premiums on the marketplace will be kept low," Otero emphasized. "That's one example of how people are able to keep their affordable access to health care."
Medicaid provides low-cost health coverage to about 42% of New Mexicans, the highest per capita enrollment in the country. In a state where one in five children lives in poverty, Otero, who helped prepare a report on possible federal effects from the cuts, said Medicaid and affordable health coverage are essential for keeping families and children healthy. About one-third of New Mexico children are enrolled.
Otero pointed out the state's 2027 budget includes funding coverage for almost 47,000 New Mexicans and will reduce health care costs for up to 122,000 people statewide. She warned the Medicaid red tape the federal government has implemented, or will soon implement, will cause barriers for people they may not be aware of.
"That includes the work requirements but also the six-month redetermination process," Otero outlined. "It's just a totally new process that most Medicaid enrollees are not used to."
Previous Medicaid eligibility and enrollment policies required states to conduct redetermination every 12 months. It is now required every six months. Nationwide, work requirements will affect many in Medicaid expansion programs. Starting on Jan. 1, adults ages 19-64 must work or volunteer 80 hours per month to keep their Medicaid coverage.