SANTA FE – New Mexico state employees are on track to see lower health insurance premiums after the House approved Senate Bill 376, sending the legislation to Gov. Michelle Lujan Grisham for final approval.
“This bill will make a real difference for New Mexico’s state employees,” said Kari Armijo, secretary of the New Mexico Health Care Authority. “As we approach our first anniversary as the Health Care Authority, this legislation proves what’s possible when we tackle big challenges head-on. By reducing health insurance costs for workers and closing the program’s budget gap, we’re delivering real savings while ensuring long-term stability — this is exactly the kind of smart policy that strengthens our workforce and improves New Mexico’s health care system.”
Under SB 376, the state’s contribution to employee health insurance premiums will increase, significantly reducing the amount state employees pay. The legislation also eliminates the state health benefits program’s budget shortfall and saves millions of dollars in general funds in state fiscal year 2026.
SB 376 addresses multiple challenges facing the New Mexico State Health Benefits Plan, which provides coverage to state, local and municipal employees. Currently, New Mexico has the lowest state contribution to employee health care premiums in the country, covering just 65% of costs. Additionally, many National Guard members struggle with high uninsured rates due to coverage costs, SB 376 includes provisions to offer premium assistance for eligible members, improving access to affordable coverage.
The bill passed 36-2 in the Senate and 52-13 in the House, with strong bipartisan support. It is now heading to the governor’s desk for final approval. This legislation solidifies the administration’s commitment to reducing health care costs for state employees.
“This bill puts money back in the pockets of state employees while fixing a long-standing budget shortfall,” said Sen. George Muñoz, a sponsor of the bill. “State workers deserve affordable health care, and SB 376 makes that a reality.”
“This is a win for working families and a win for New Mexico’s future,” said Sen. Liz Stefanics, a sponsor of the bill. “By lowering costs and strengthening the system, we’re investing in the people who keep our state running.”
The New Mexico Health Care Authority extends its gratitude to the bill’s sponsors, legislative supporters and partners who worked to advance this crucial legislation. Their dedication ensures that New Mexico’s state workforce will benefit from greater health care coverage affordability.
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