New Mexico lawmaker criticizes state insurance superintendent for approving premium increase

New Mexico Legislative Finance Committee Chair Rep. Nathan Small (D-Las Cruces) on Wednesday criticized the state’s insurance regulator for approving a steep premium hike for New Mexicans who purchase health coverage on the state’s exchange.

The Office of the Superintendent of Insurance, which is tasked with vetting and approving proposed rate increases, announced Tuesday that it had approved a 24.4% average increase for roughly 80,000 New Mexicans who receive coverage through BeWell, the state’s insurance marketplace. The increases will take effect in January. 

In a statement alongside the announcement, OSI Superintendent Alice Kane attributed the increase in premiums to inflation, rising healthcare costs and other factors. She also said that while the new increase was above the national average of 15%, New Mexico’s average premium costs remain in line with other states.

But Small, in a statement Wednesday, criticized Kane’s office for not consulting lawmakers before approving the change and also for not negotiating a better price. He said the state has more leverage than the office brought to bear in negotiations because of how much state funding subsidizes healthcare premiums.

“The state is a major purchaser and funder of healthcare, which gives us a strong voice and negotiating power to demand reasonable rates, transparency, and accountability,” he said. “This approval is shocking and deeply disappointing, since our investments were intended to help families afford care, not increase profit margins for insurance companies.”

A spokesperson for the OSI did not immediately provide a response to Small’s criticism Wednesday. 

In recent legislative sessions, the Legislature established a fund to fully replace the federal Enhanced Premium Tax Credit, which expired at the end of 2025, in addition to other existing state subsidies for BeWell customers. Those subsidies regularly reduce premiums of $845 or more to as low as $10 for lowest-income patients, according to a recent Legislative Finance Committee report. 

Small said the OSI needs to give a clear explanation to both the Legislature and the public about what is driving the premium increases and whether the office considered alternatives to such a large rate hike. He also said the office needs to provide a fuller accounting of how the Legislature’s “affordability investments are being utilized to keep costs down for families”