HB 122 — HEALTH INSURANCE PREMIUM SURTAX

"[NEWIf MATERIAL]an HEALTHact CAREof AFFORDABILITYthe FUND.--United A.States congress is signed into law that imposes the annual fee on health insurance providers pursuant to Section 9010 of the federal Patient Protection and Affordable Care Act, or that imposes a substantially similar fee on the same class of taxpayers, the rate of the health insurance premium surtax shall be decreased at a rate equal to the rate of the annual fee imposed;

Theprovided "healththat carethe affordabilityrate fund"of isthe createdhealth ininsurance thepremium statesurtax treasury.shall not be less than one percent.

TheA fundreduction consistsin the health insurance h g premium surtax pursuant to this subsection shall go into effect o t hr on the later of distributions,the appropriations,effective gifts,date grantsof andthe donations.imposition of the g e i k federal annual fee or ninety days after the congressional act h r i s h imposing the federal annual fee is signed into law."»Hfl1 , t, e u g SECTION 3.

MoneyA innew thesection fundof ethe tNew 17Mexico atInsurance theCode ende ofb al fiscale yeare shallh notis revertenacted to anyread: other fund.

w l n d 18d Thei insurance department shall administer the fund, and money = = 19o ah l"[NEW inMATERIAL the] fundHEALTH isCARE subjectAFFORDABILITY toFUND.-- appropriationl by] theb legislature,d for i a º e r 20i purposes= providedr byA. this section.

DisbursementsThe from"health thecare fundaffordability afund" tis mcreated mt 21e shallw be made by warrant of the secretary of finance and d rm ea 22n administrationo pursuantin to vouchers signed by the cstate etreasury. s k 23 superintendent or the superintendent's authorized e a n b 24 representative.

uThe [fund B.consists of distributions, d m :

b e d s º o t n = .218829.5GLGAIC March 8, 2021 (9:01am) s k m e - 5 - e a n e d r e l u [ A d appropriations, gifts, grants and donations.

Money in the fund at the end of a fiscal year shall not revert to any other fund.

The HAFCº insurance department»HAFC HAFCºoffice of superintendent of insurance»HAFC shall administer the fund, and money in the fund is subject to appropriation by the legislature for purposes provided by this section.

Disbursements from the fund shall be made by warrant of the secretary of finance and administration pursuant to vouchers signed by the superintendent or the superintendent's authorized representative.

B.

.218829.5GLG - 4 - (1) reduce health care premiums and cost sharing for New Mexico residents who purchase health care coverage on the New Mexico health insurance exchange;

HAFCº (2) reduce premiums for small businesses and their employees purchasing health care coverage in the h fully insured small group market;»HAFC g o t hr HAFCº(2)»HAFC HAFCº(3)»HAFC provide g e i k resources for planning, design and implementation of health h r i s care coverage initiatives for uninsured New Mexico residents;

h , t, e u g and (3)e b l e e h HAFCº (3)»HAFC HAFCº(4)»HAFC provide n d d i = = o h resources for administration of state health care coverage l ] b ,d i a º e r i = r initiatives for uninsured New Mexico residents.

t e w d m a n o C.

If the federal Patient Protection and Affordable Care Act is repealed in full or in part by an act of congress or invalidated by the United States supreme court and eliminates or reduces comprehensive health care coverage for New Mexico residents through medicaid or the New Mexico health insurance exchange, the fund may be used to maintain coverage through the New Mexico health insurance exchange or through e t 17 medical assistance programs administered by the human services w l n d 18 department, provided that coverage is prioritized for New = = 19 a l Mexico residents with incomes below two hundred percent of the i a e r 20 federal poverty level." a t m m: 21 SECTION 4.

b e d s º o t n = .218829.5GLGAIC March 8, 2021 (9:01am) s k m e - 6 - e a n e d r e l u [ A newd sectionCare Act is repealed in full or in part by an act of congress or invalidated by the United States supreme court and eliminates or reduces comprehensive health care coverage for New Mexico Insuranceresidents Codethrough dmedicaid ror ethe 22New isMexico enactedhealth insurance exchange, the fund may be used to read:maintain coverage through the New Mexico health insurance exchange or through medical assistance programs administered by the human services department, provided that coverage is prioritized for New Mexico residents with incomes below two hundred percent of the federal poverty level.

cHAFCº e"»HAFC sHAFCºD. k 23 "[NEW MATERIAL] HEALTH CARE AFFORDABILITY PLAN-- e a n b 24 RULEMAKING--REPORTING REQUIREMENTS.-- u [ A.

ThePrior superintendent,to inJuly consultation1, with2025, the .218829.5GLGstaff -of 5the -legislative secretaryfinance ofcommittee humanshall services,conduct secretarya program evaluation to measure the impact of taxationchanges andto revenuethe andhealth chiefinsurance executivepremium officersurtax ofand the Newcreation Mexicoof the health insurancecare exchange,affordability shallfund promulgateas rulesit to:relates to the purpose of the fund.

E.

Prior to July 1 of each year, the superintendent h shall provide actuarial data from the health care affordability u » r fund to the legislative finance committee.

t h g e l i F.

Prior to July 1 of each year, the h r i s superintendent, in consultation with the secretary of human h , e h t u g services, the secretary of taxation and revenue and the chief e b l e e , gh executive officer of the New Mexico health insurance exchange, n d d i = = o h shall work with the legislative finance committee and the l ] b ,d i a º r e r = department of finance and administration to develop and report t e w d m a n o on performance measures relating to the health care d m :

b r e t º o t n = .218829.5GLGAIC March 8, 2021 (9:01am) s k m e - 7 - e a n e d r e l u [ A d affordability fund and any programs or initiatives funded by the fund."»HAFC SECTION 4.

A new section of the New Mexico Insurance Code is enacted to read:

"[NEW MATERIAL] HEALTH CARE AFFORDABILITY PLAN-- RULEMAKING--REPORTING REQUIREMENTS.-- A.

The superintendent, in consultation with the secretary of human services, secretary of taxation and revenue and chief executive officer of the New Mexico health insurance exchange, shall promulgate rules to:

In providing this assistance, the superintendent shall develop health care affordability criteria designed to reduce the amount that individuals pay in premiums and h out-of-pocket medical expenses for qualified health plans u » r offered on the New Mexico health insurance exchange;

and t h g e l i (2) establish income eligibility parameters h r i s for the health care affordability criteria for plan year 2023 h , e h and each subsequent calendar year based on available funds.

t u g e b l e e , gh New Mexico residents who qualify shall have an income that is n d d i = = o h eligible for advanced premium tax credits under the federal el t] 17b ,d i a º r Patient Protection and Affordable Care Act.

we lr n= t e w d 18m a n o B.

The superintendent, in consultation with the =d = 19 a l human services department, the New Mexico medical insurance i a e r 20 pool, the department of health and stakeholder groups, a t m m: 21 including health care providers that serve uninsured residents, d r e 22 health insurance carriers and consumer advocacy groups, shall c e s k 23 develop a plan for extending health care coverage access to e a n b 24 uninsured New Mexico residents who do not qualify for federal u [ premium assistance or, except by reason of incarceration, .218829.5GLG - 6 - qualified health plans, through the New Mexico health insurance exchange.

b r e t º o t n = .218829.5GLGAIC March 8, 2021 (9:01am) s k m e - 8 - e a n e d r e l u [ A d human services department, the New Mexico medical insurance pool, the department of health and stakeholder groups, including health care providers that serve uninsured residents, health insurance carriers and consumer advocacy groups, shall develop a plan for extending health care coverage access to uninsured New Mexico residents who do not qualify for federal premium assistance or, except by reason of incarceration, qualified health plans, through the New Mexico health insurance exchange.

(2) health care affordability criteria designed to reduce the amount that individuals pay in premiums h and out-of-pocket medical expenses under the plan and that u » r result in, to the greatest extent possible, health care costs t h g e l i comparable to costs for New Mexico residents for whom h r i s assistance is provided under Subsection A of this section;

and h , e h (3) income eligibility parameters that t u g e b l e e , gh prioritize eligibility for New Mexico residents with incomes n d d i = = o h under two hundred percent of federal poverty level.

el t] 17b ,d i a º r C.

On or before October 31, 2023 and each October we lr n= t e w d 18m a n o 31 thereafter, the superintendent shall submit a report to the =d =m 19: a l legislative finance committee and legislative health and human i a e r 20 services committee, which shall include:

ab r e t mº o t n = .218829.5GLGAIC March 8, 2021 (9:01am) s k m 21e (1)- a9 summary- ofe thea affordabilityn criteriae d r e 22l implementedu pursuant[ toA Subsectionsd Alegislative finance committee and Blegislative ofhealth thisand section;human services committee, which shall include:

c(1) e s k 23 (2) the estimated number of uninsured New e a nsummary b 24 Mexico residents who enrolled in coverage following u [ implementation of the affordability criteria implemented pursuant to .218829.5GLG - 7 - Subsections A and B of this section;

and(2) (3) the amountestimated innumber reducedof costsuninsured andNew coverageMexico assistanceresidents thewho initiativesenrolled provided in thecoverage currentfollowing andimplementation previousof calendarthe yearsaffordability bycriteria incomepursuant level,to countySubsections A and coverageB source."of SECTIONthis 5.section;

and (3) the amount in reduced costs and coverage assistance the initiatives provided in the current and previous calendar years by income level, county and coverage source." HAFCº SECTION 5.

The effective date of the provisions of Section 1 of this act is July 1, 2022.

The effective date of the provisions of Section 2 of this act is January 1, 2022.2022.»HAFC h HAFCºSECTION 5.

EFFECTIVE DATE.--The effective date of u » r the provisions of this act is January 1, 2022.»HAFC t h g e l i - 810 - 12h 14r 16i s h , e h t 17u wg e b l e e , gh n d 18d i = = 19o ah l i] ab e,d ri 20 a tº m m 21 d r e 22r c= t e sw kd 23m e a n bo 24d um [: .218829.5GLG

b r e t º o t n = .218829.5GLGAIC March 8, 2021 (9:01am) s k m e e a n e d r e l u [ A d