Health insurance premiums a key sticking point for New Mexico Democrats in government funding standoff

A government shutdown could be on the horizon and health care is the sticking point for New Mexico Democrats.

“The Republicans are attacking health care,” said Rep. Teresa Leger Fernández, D-N.M. “They’re raising prices on health insurance premiums, and they’re cutting health research.”

Republicans in Congress have proposed a continuing resolution — a stopgap measure to temporarily keep funding the federal government at the same levels into November so that new spending bills can be worked out. But Democratic leaders in the Senate and House want a continuing resolution that would permanently extend health insurance subsidies.

The subsidies keep premiums lower for Affordable Care Act insurance plans and will expire at the end of 2025.

About 6,300 New Mexicans will lose eligibility for federal premium tax credits if Congress does not act to extend the enhanced and expanded subsidies, according to New Mexico Health Care Authority spokeswoman Marina Piña.

The Democrat’s stopgap funding proposal is not “clean,” Senate Majority Leader John Thune, R-S.D., said on the Senate floor Thursday.

“It’s packed full of partisan policies and measures designed to appeal to Democrats’ leftist base,” Thune said.

If Congress doesn’t pass a continuing resolution by the end of September, there will be a government shutdown.

The House is expected to vote on the Republican continuing resolution on Friday and both parties are placing the blame for a potential shutdown squarely on their opposition.

“Congressional Republicans are steering us toward a government shutdown — costs for families are skyrocketing while millions of Americans face the largest health insurance premium hike in more than a decade, and billions for schools, farmers, and medical research are being withheld from our communities,” Sen. Ben Ray Luján, D-N.M., said in a statement.

Successful government funding efforts have one thing in common, said Sen. Martin Heinrich, D-N.M.: “Good faith bipartisan negotiations. But Donald Trump and congressional Republicans are refusing to negotiate, making a government shutdown very likely.”

Rep. Melanie Stansbury, D-N.M., also called out Republicans for wanting to “renege on an agreement to pass a bipartisan budget.”

The Democrats’ continuing resolution would fund the government through October, reverse Medicaid cuts, and extend the federal premium subsidies, which help keep health insurance premiums lower for approximately 20 million Americans. It would also make it more difficult for the executive branch to withhold appropriated funds and provide extra funding for security protections for members of Congress, executive branch officials and the judiciary.

New Mexico is prepared to shield most consumers who would lose the federal premium subsidies using New Mexico’s Health Care Affordability Fund, according to a news release from the Office of the Superintendent of Insurance.

The state is allowed to subsidize insurance premiums for households making under 400% of the federal poverty level. To provide state-funded premium relief for individuals and families above 400% of the federal poverty line, New Mexico’s statute would need to be changed and the state Legislature would need to appropriate sufficient funding to cover those costs, Piña said.

The people most likely to lose subsidies entirely tend to be early and pre-retirees in the 50 to 64 age range, self-employed or living in rural areas, according to KFF.

Along with more than 30 of his colleagues, Rep. Gabe Vasquez, D-N.M., sent a letter to congressional leaders demanding urgent action on extending the enhanced premium tax credits. Vasquez is also sponsoring legislation to extend the tax credits.

Leger Fernández does not plan to vote for the Republican continuing resolution.

“I do think that the outcry about the health care crisis that they have created is giving pause to many of my (Republican) colleagues,” Leger Fernández said. “The question is, will they have the courage to stand up to Trump and to stand up for their constituents?”