Senate committee amends, forwards bill to overhaul state health benefits; vote 8‑0 for do‑pass as amended

The Senate Finance Committee amended and recommended a do‑pass for Senate Bill 376 on a bipartisan 8‑0 vote after hearing sponsors, Health Care Authority staff and multiple organizational supporters. The bill would revise contribution tiers for state health benefits, require actuarially sound budget requests from the Health Care Authority (HCA), and create premium subsidies for lower‑income employees and members of the National Guard through the Health Care Affordability Fund.

Sponsor and HCA presentation

Senator Stefanik (sponsor) and HCA staff described the bill as a data‑driven package intended to make state coverage more affordable and fiscally sustainable. HCA deputy staffer Alex Castillo Smith said the HCA’s mission since July has been to “fix the state of New Mexico health insurance that more than 60,000 New Mexicans depend on,” and the HCA’s coverage innovations director, Colin Bio, summarized five core bill provisions, including a requirement for actuarially sound budget requests and replacement of outdated tiered employee contribution brackets with an 80/20 split.

Amendments and committee action

Committee members adopted two amendments during the hearing. One technical amendment sought actuarial reporting and annual actuarial soundness for rates; another amendment clarified contribution treatment for legislators (an amendment the sponsor described as politically targeted to legislators). The amendment on the latter was debated and adopted by roll call after discussion; the committee then voted the full bill out with a do‑pass recommendation.

Public and union support

Multiple organizations and stakeholders voiced support during the hearing. AFSCME, the National Guard adjutant general, NEA‑New Mexico, the New Mexico Center on Law and Poverty (New Mexico Together for Health Care campaign), and CWA Local 7076 provided testimony urging passage. The adjutant general said about 422 National Guard members lacked health insurance and urged support for a provision to subsidize TRICARE Select Reserve shortfalls so guardsmen can obtain continuous coverage.

Fiscal notes and funding

HCA presenters told the committee the bill’s original fiscal plan relied heavily on the Health Care Affordability Fund as a nonrecurring source for part of the transition and noted the agency had not completed final scoring for the most recent amendment affecting legislators. HCA said that, without reform, the state would face increasing general fund obligations to cover the health benefits program; sponsors said the package is intended to eliminate the existing health benefits shortfall and save the general fund money over time (sponsor cited a $155 million five‑year savings estimate).

Roll‑call details and outcome

During amendment roll calls and the final committee vote the record shows multiple senators voting in favor. The committee reported a do‑pass recommendation by an 8‑0 margin and moved the bill forward from Senate Finance as amended.

Ending

SB 376 was reported out of Senate Finance with amendments and a do‑pass recommendation; HCA and stakeholders will work with the committee to finalize fiscal scoring and any technical language as the bill moves to subsequent proceedings.