New Mexico lawmakers are advancing legislation that would use state funds to offset the impending expiration of ACA enhanced premium tax credits.
The bill, passed Oct. 1 in the state’s House of Representatives, would take effect immediately if signed by Gov. Michelle Lujan Grisham.
The legislation would authorize the state to provide $17 million in enhanced premium and cost-sharing assistance for individuals and families purchasing coverage through the state exchange, including those earning up to 400% of the federal poverty level who qualify for federal subsidies, as well as residents who meet all other criteria but exceed federal income thresholds.
The measure comes amid the government shutdown, where lawmakers failed to reach a funding deal or extend the enhanced subsidies set to expire at year’s end. Premium tax credits, originally available to households making 100% to 400% of the federal poverty limit, were expanded in 2021 under the American Rescue Plan to include those above that threshold, capping benchmark plan premiums at 8.5% of income.
In September, Colorado passed a similar bill that allocates up to $100 million in state funds to stabilize its individual market.
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