More than 81,000 residents of New Mexico have enrolled in medical and dental coverage through BeWell, the state’s health insurance exchange, marking a record high as the enrollment period approaches its deadline on January 15, 2025. This number includes over 9,000 new customers since the enrollment period began on November 1, significantly surpassing the previous record of approximately 71,000 set during the same period last year.
The increase in enrollment comes despite the impending expiration of certain federal health insurance subsidies. Alex Sanchez, BeWell’s Chief Experience Officer, expressed optimism about the growth, stating, “It’s the third year in a row that we’ve had record enrollment, so it feels great to know that so many more New Mexicans are getting the help they need with affordable and reliable health care.”
Impact of Expiring Subsidies
The deadline for open enrollment coincides with the expiration of the Enhanced Premium Tax Credits, which had provided financial assistance to many enrollees, particularly middle-income households earning over 400% of the federal poverty level – approximately $130,000 annually for a family of four. The expiration of these credits has been a contentious issue, contributing to the longest federal government shutdown in U.S. history, which lasted throughout October and early November 2023.
Despite these challenges, New Mexicans purchasing insurance through the marketplace will have some protection against rising health care costs in 2026. The New Mexico Legislature allocated around $40 million during its regular session in January 2025 and an October special session to replace the expiring subsidies in the first half of that year. However, rising costs will still affect individual plans, with an average rate increase of nearly 36% expected, according to the New Mexico Office of the Superintendent of Insurance.
Sanchez noted that while premiums through BeWell remain manageable, with more than half of enrollees paying less than $10 per month, some individuals will still face increased costs due to the overall rise in health insurance premiums.
Legislative Actions and Personal Stories
Legislation aimed at maintaining state-funded insurance subsidies is anticipated to be a focus during the upcoming legislative session, which commences on January 20, 2025. The state Health Care Authority is requesting $103.7 million to extend these subsidies. Additionally, Gov. Michelle Lujan Grisham has included an $81.1 million line item in her budget recommendation for fiscal year 2027 to further reduce health care premiums for those obtaining coverage through BeWell.
The importance of these subsidies is underscored by personal stories such as that of Garrett Peck, a Santa Fe-based author and historian who relies on the exchange for his health insurance. As a self-employed individual, Peck does not qualify for employer-sponsored coverage and is ineligible for Medicaid due to his income level. The state subsidies will lower his premium by $397 per month until June, significantly easing his financial burden.
Peck expressed gratitude for the support provided by the state, stating, “I’m very grateful to the Legislature and to the governor for doing this, because otherwise, my premium was going to be $1,130 — and it only goes up from here.” As he navigates the insurance landscape and approaches Medicare eligibility, Peck emphasizes the necessity of maintaining health coverage.
In summary, the record enrollment in New Mexico’s BeWell exchange reflects not only the public’s desire for accessible health care but also the tangible impact of state interventions in providing necessary financial support. With ongoing legislative efforts and personal testimonies highlighting the need for affordable health insurance, New Mexico appears poised to continue adapting to the evolving landscape of health care coverage.
