New Mexico’s health insurance exchange, BeWell, is experiencing unprecedented enrollment numbers as the January 15, 2025, deadline for open enrollment approaches. More than 81,000 residents have enrolled in medical and dental coverage since November 1, 2024, including over 9,000 new customers. This figure surpasses the previous record set in 2025 by nearly 10,000 consumers.
Record Enrollment Amid Subsidy Concerns
The surge in enrollment comes despite the impending expiration of certain federal health insurance subsidies in 2025. The Enhanced Premium Tax Credits, which helped reduce out-of-pocket costs for many enrollees, will end on December 31, 2024. The credits notably assisted middle-income families earning over 400% of the federal poverty level, approximately $130,000 annually for a family of four.
“It’s the third year in a row that we’ve had record enrollment, so it feels great to know that so many more New Mexicans are getting the help they need with affordable and reliable health care,” said Alex Sanchez, chief experience officer of BeWell. His comments highlight the increasing reliance on the marketplace for health coverage.
The upcoming challenge includes addressing rising insurance costs. The New Mexico Office of the Superintendent of Insurance announced an average rate increase of nearly 36% for individual plans in 2026. Despite this, BeWell’s premiums remain low, with more than half of enrollees paying less than $10 monthly.
Legislative Actions to Support Residents
In response to the anticipated surge in costs, the New Mexico Legislature has taken proactive measures. During its regular session in January 2025 and an October special session, lawmakers allocated around $40 million to offset the loss of federal subsidies in early 2026. Legislation to extend these state-funded insurance subsidies is expected to be introduced in the upcoming legislative session starting January 20, 2025. The state Health Care Authority is seeking $103.7 million to continue support for these subsidies, while Governor Michelle Lujan Grisham has proposed an $81.1 million budget item to help reduce health care premiums.
Sanchez expressed confidence that lawmakers would prioritize affordable health insurance solutions, citing the swift action taken during the special session as evidence of commitment from state officials. The potential continuation of subsidies is critical for many residents relying on affordable coverage.
The impact of state subsidies is palpable for many New Mexicans. For instance, Garrett Peck, a Santa Fe author and tour guide, is self-employed and does not have access to employer-sponsored insurance. At nearly 58 years old, he faces challenges in securing affordable coverage. Thanks to state subsidies, his insurance premium will be reduced by $397 monthly through June 2025. Without this assistance, Peck’s premium would have soared to $1,130.
“I’m very grateful to the Legislature and to the governor for doing this,” Peck stated. “Otherwise, my premium was going to be $1,130 — and it only goes up from here.” As he navigates the changing landscape of health insurance, Peck plans to approach the market “one year at a time,” emphasizing the necessity of coverage despite the financial sacrifices involved.
As the deadline for open enrollment draws near, New Mexico’s health insurance exchange stands as a vital resource for residents seeking affordable coverage options, reflecting both the challenges and the commitments of state leadership in addressing health care needs.
