The bill amends Section 7-40-3 of the New Mexico Statutes to exclude dental and vision only contracts from the health insurance premium surtax. Specifically, it modifies the language to clarify that the surtax, which is imposed at a rate of three and seventy-five hundredths percent on gross health insurance premiums, does not apply to contracts that cover only dental, vision, or both dental and vision services. This change aims to provide clarity and potentially reduce the financial burden on consumers purchasing these specific types of insurance.

Additionally, the bill maintains the existing provisions regarding the imposition of the premium tax and the health insurance premium surtax, while ensuring that the surtax does not apply to return health insurance premiums or dividends paid to policyholders. The effective date for the provisions of this act is set for January 1, 2026.

Statutes affected:
introduced version: 7-40-3