HB 47 New Mexico House · 2026 Regular Session

SCHOOL EMPLOYEE INSURANCE PROGRAMS

HB 47 amends New Mexico law to change how school districts and charter schools cover insurance costs for their employees. It requires these entities to pay at least 80% of insurance costs for employees earning under $50,000 annually, 70% for those earning $50,000-$60,000, and 60% for those earning over $60,000. The bill also mandates a study on the long-term sustainability of these insurance programs and includes provisions for cost-containment measures in health benefit plans. This directly affects public school employees and school districts across New Mexico, shifting their contribution responsibilities compared to current law.

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

House Passage

Feb 2026

Senate Passage

Feb 2026

Signed into Law

Mar 2026

Introduced Jan 7, 2026 Signed Mar 9, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

AF substitute → Final Version · 7 edits

MODERATE

This bill significantly restructures how New Mexico public employers fund employee health insurance, shifting from a tiered salary-based contribution model to a flat 80% employer contribution for most state employees, while increasing school district contributions to 80%. The changes also add new requirements for cost-containment measures, reference-based pricing for hospitals, and establish a study on program sustainability.

Scope change

The bill expands the scope by adding specific requirements for reference-based pricing in hospital services and requiring a study on insurance program sustainability, while clarifying applicability to various state departments and institutions.

FISCAL

Changed state employer contribution percentages from a tiered system (75% for under $15k, 70% for $15-20k, etc.) to a flat 80% contribution for employees earning under $30k, 70% for $30-40k, and 60% for $40k and above.

Increased school district and charter school contribution requirement from unspecified amounts to a minimum of 80% of insurance costs.

REQUIREMENT

Added requirement for state health benefits to include reference-based pricing for in-network and out-of-network hospital services to control healthcare costs.

Added mandate for annual reporting on cost-containment measure effectiveness by September 1.

Added requirement for a study on the sustainability of insurance programs for public school employees.

TIMELINE

Established new effective dates: July 1, 2013 for basic life insurance, July 1, 2016 for workers' compensation injured employees, and July 1, 2025 for the flat 80% contribution rate.

ELIGIBILITY

Modified legislator eligibility to require 100% employee contribution for group benefits, and clarified cafeteria plan participation rules.

introduced version → AF substitute · 7 edits

MODERATE

This bill significantly restructures how public school employees in New Mexico are covered by insurance. It increases employer contribution percentages for lower-wage employees, eliminates waivers for school districts to participate in the state insurance program, and establishes new requirements for cost-containment measures. The changes aim to improve sustainability of insurance programs while maintaining coverage for public school employees.

Scope change

The bill expands the scope of mandatory participation in the state insurance program by eliminating waiver options for school districts and charter schools starting July 1, 2027. It also extends the applicability of certain contribution requirements to include additional employee salary brackets.

FISCAL

Increased employer contribution percentages for public school employees based on salary brackets, with higher percentages required for lower-wage employees (e.g., 80% for employees earning under $50,000 compared to previous 75% for those under $15,000)

ELIGIBILITY

Eliminated the ability for school districts and charter schools to receive waivers from participating in the state insurance program for health, disability income, or term life insurance after July 1, 2027

REQUIREMENT

Requires implementation of reference-based pricing programs for hospital services to control healthcare costs and maximize benefits

Mandates a comprehensive study on insurance program sustainability for public school employees to be completed by October 1, 2026

Requires the health care authority to establish an affordability program using appropriations from the health care affordability fund for certain employees

TIMELINE

Established new effective dates with most provisions taking effect July 1, 2026, and waiver elimination provisions effective July 1, 2027

DEFINITION

Added new definitions for 'cost of the insurance' and clarified that political subdivision contributions generally cannot exceed 60% of insurance costs

Floor votes · Senate Feb 18, 2026 · House Feb 11, 2026

How they voted

32–0

Passed · 6 other

Total votes 38

Feb 18, 2026

D Democratic22

19 Yea 3

86% Yea

R Republican16

13 Yea 3

81% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 9, 2026

Signed into law

Signed

executive

Feb 18, 2026

Upper · Passed

passed Senate

upper

Feb 16, 2026

Upper · Passed

DO PASS committee report adopted

upper

Feb 12, 2026

Introduced

Sent to Senate Education Committee

upper

Feb 11, 2026

Lower · Passed

passed House

lower

Feb 10, 2026

Lower · Passed

DO NOT PASS, replaced with committee substitute

lower

Jan 26, 2026

Lower · Passed

DO PASS, as amended, committee report adopted

lower

Jan 21, 2026

Introduced

Sent to House Education Committee & House Appropriations & Finance Committee

lower

Jan 7, 2026

Introduced

Sent to House Pre-file

lower

5 primary · 0 co-sponsors