The bill amends the existing law regarding state employee health benefits by updating the contribution percentages for group insurance. Specifically, it establishes that effective July 1, 2025, the state or any of its executive, judicial, or legislative departments will contribute up to eighty percent of the cost of insurance for employees, regardless of their salary bracket. This replaces the previous structure that had different contribution percentages based on salary ranges, which included contributions of up to sixty percent for employees earning $40,000 or more. Additionally, the bill introduces provisions for the Secretary of Health Care Authority to utilize funds from the Health Care Affordability Fund to reduce or eliminate premiums for certain government employees.

Furthermore, the bill creates a program under the Secretary of Health Care Authority to make health benefit premiums more affordable for eligible employees, with the criteria for eligibility and contributions to be updated annually. It also expands the purpose of the Health Care Affordability Fund to include covering a portion or all of the net premium contributions for state employees who do not qualify for Medicaid and have a modified adjusted gross income up to 250% of the federal poverty level. The fund will also support members of the New Mexico National Guard who qualify for a federal TRICARE reserve select policy.

Statutes affected:
introduced version: 10-7-4, 59A-23F-11