by Mónica Rae Otero, LMSW
Policy Analyst
August 03, 2026
Health care is more than a budget item. It is the foundation that allows children, families, and communities to thrive. Yet for far too many New Mexicans, getting the care they need remains out of reach because of rising costs, provider shortages, and harmful federal policy decisions. While New Mexico has made meaningful progress in strengthening its health care system, the work is far from over.
Last week, the Legislative Finance Committee and the Legislative Health and Human Services Committee met jointly to examine what is driving health care costs in New Mexico and to review the progress the state has made to expand access and affordability. The discussion underscored an important reality: meaningful change requires sustained public investment, bold policymaking, and a commitment to protecting families from policies that threaten their health and economic security.
Like much of the country, New Mexico continues to experience rising health care costs driven by inflation, increasing medical prices, and higher insurance premiums. In 2020, New Mexicans spent more than $17.3 billion on health care, over $8,300 per person, and those costs have almost certainly continued to climb. Health insurance premiums for the average New Mexican increased by 36% in 2026, placing even greater financial strain on families already struggling to make ends meet.
Those affordability challenges have been compounded by federal actions under the One Big Beautiful Big Act (OBBBA), which reduced or eliminated premium subsidies for people purchasing insurance through the New Mexico BeWell Marketplace. These federal cuts threatened to make health coverage unaffordable for thousands of New Mexicans. Fortunately, state leaders acted. By investing resources from the Health Care Affordability Fund, lawmakers protected Marketplace coverage from the full impact of the federal cuts. That investment paid off: New Mexico became the only state in the nation to increase Marketplace enrollment, with BeWell enrollment growing by 15.4% while avoiding significant premium increases. This success demonstrates what is possible when policymakers prioritize people over politics and invest in proven solutions that keep families ensured.
The state’s commitment to strengthening Medicaid has also produced important gains. Medicaid covers nearly one in three New Mexicans and serves as the backbone of our health care system. Recent investments by the Legislature and the Health Care Authority to increase Medicaid reimbursement rates have helped attract more providers into the program, improving access to primary care and behavioral health services. These investments benefit not only Medicaid recipients but also strengthen the health care workforce and improve access across the entire state.
But these gains are now at risk.
New federal Medicaid requirements, including new work reporting requirements and more frequent eligibility redeterminations, could cause as many as 109,000 New Mexicans to lose their health coverage. While the Health Care Authority is required to implement these changes under federal law, state leaders are working to minimize unnecessary coverage losses through the Keep Your Benefits Campaign and other outreach efforts. Even so, bureaucratic barriers should never stand between families and the health care they need.
The challenges facing New Mexico’s health care system cannot be solved overnight. They require continued investment, thoughtful policymaking, and a steadfast commitment to health equity. Every child deserves access to preventive care. Every parent deserves affordable coverage. Every community deserves a health care workforce that can meet its needs.
New Mexico has shown that state leadership can protect families when federal policies fall short. Now lawmakers must build on that momentum by continuing to lower costs, strengthen Medicaid, support providers, and ensure that every New Mexican, regardless of income, geography, or background, can access quality, affordable health care. Our children, families, and future depend on it.