By Mónica Rae Otero, LMSW
June 18, 2025
New Mexico’s children and families deserve affordable, high-quality health care, but instead they face the fear of losing this basic human right. Medicaid, among other essential services like food assistance, is being threatened in the budget bill moving through the U.S. Congress right now.
In late May, the House of Representatives voted to pass the so-called “One Big Beautiful Bill,” which has ugly and harmful implications for families and communities throughout the U.S. and New Mexico.
The bill proposes the largest cuts to Medicaid in history, and additional cuts to the Affordable Care Act (ACA). In conjunction with these cuts, the bill will also allow the enhanced premium tax credits to expire, which will increase the cost of health care premiums for working families who rely on the ACA marketplace to purchase their health insurance.
These cuts to Medicaid will result in a loss of health care coverage for 16 million people over the span of 10 years, increased out-of-pocket costs and premiums, and reduced funding for hospitals and the health care system as a whole – all to provide large tax breaks to the nation’s wealthiest individuals.
Unfortunately, as with most states, the proposed cuts at the federal level are set to have major impacts on New Mexicans. Medicaid is the largest payor of health care in New Mexico, and a loss of federal matching dollars would mean loss of coverage, decreased reimbursements for health care providers, and closures of hospitals and clinics across our state. In addition, harsh new work requirements will mean our families will face onerous barriers to coverage that will force as many as 175,000 people off the program, especially children, low-income adults, seniors, and those who are disabled.
Worst of all, the discontinuation of the enhanced premium tax credits – which help low- and middle-income families and small businesses afford health care coverage through the ACA marketplace – will cause premiums to soar. Increased premiums further stress family budgets, creating another barrier that would force many of our families and local businesses to make the difficult choice to go without the essential health care coverage they need.
In addition, the budget bill’s eligibility changes mean lawfully-residing children and pregnant adults will lose access to affordable ACA marketplace coverage. This includes refugees, people granted asylum, and some victims of domestic violence and sex or labor trafficking. When any of our children are unable to access health care coverage, they forgo early screening and preventative care and become more vulnerable to long-term negative health outcomes. Similarly, lawfully-residing people who are pregnant lose access to essential prenatal care and experience worsening maternal health outcomes over time.
Ultimately, this bill will result in a loss of coverage, increased costs for families and to the state, and threaten our already-stretched-thin health care system here in New Mexico. As a community, it is vital that we stand together to protect Medicaid. As the reconciliation bill moves forward in the Senate, we must fight against harmful cuts that will impact children, families, and our communities.
Fortunately, the members of the New Mexico Congressional delegation have been champions in opposing this harmful bill. Contact your U.S. Representative or Senator today to thank them for their hard work in defending Medicaid and ensuring our families and children have everything they need to lead happy, healthy lives. You can also help by sharing your story about Medicaid and its importance to you, your family, or your communities.