Dear State Employees,
As we recently shared, legislation to lower state employee
health insurance costs was signed into law by Governor Lujan
Grisham on April 7, 2025. Senate Bill 376 brings significant
improvements to your health benefits starting this July. Here is
what state employees need to know:
-
The state will now pay at least 80% of premiums for medical,
dental, and vision insurance.
-
A premium assistance program will be available to help
employees with lower household incomes pay for coverage.
-
Eligible, uninsured members of the National Guard who can
purchase the TRICARE Reserve Select policy will qualify for
premium support.
-
New premium rates will go into effect during the first pay
period of the new fiscal year.
The new law also brings other improvements designed to modernize
health benefits. It allows for a broader selection of health
plans, introduces new patient billing protections for hospital
services, and eliminates a longstanding program deficit.
Most state employees will not need to take any action. If you
qualify for the new premium assistance program, you may need to
provide additional documentation to show proof of household
income.
You will receive an email with new rates and program details in
the coming weeks.
Please note these changes will not trigger a special enrollment
period that allows state employees to add new members to their
plan. You will be able to add new members to your plan during
open enrollment in the Fall.
If you have any questions, please submit them to
SHB.Questions@hca.nm.gov. We will provide an FAQ resource soon
that answers the most common questions we receive.
On behalf of the New Mexico Health Care Authority (HCA), thank
you for your public service. Your hard work and dedication were
recognized by Gov. Lujan Grisham and state leaders during the
2025 legislative session. We hope Senate Bill 376 provides
meaningful premium relief for you and your families.
Sincerely,
Kari Armijo | Cabinet Secretary
Alex Castillo Smith | Deputy Cabinet Secretary
Colin Baillio | Coverage Innovations Director State
JoLou Trujillo-Ottino | Health Benefits Director
