SB 21 amends New Mexico’s Medicare Supplement Act to require every issuer participating in the Medicare supplement market to provide an annual open enrollment period for eligible policyholders. The open enrollment window begins on the first day of the policyholder’s birthday month and must remain open for at least 60 days. During that period, eligible policyholders may buy any Medicare supplement policy of equal or lesser value than their current policy, and issuers must guarantee issuance without using health status, claims history, medical condition, or receipt of health care to deny, delay, condition, or price the coverage differently.
The bill also prohibits new policies obtained through this open enrollment process from containing preexisting-condition exclusions for conditions that would have been covered under the prior policy. In addition, issuers must give advance written notice—between 30 and 60 days before the open enrollment period begins—explaining the dates, the policyholder’s rights, and any changes to the current policy or premium. The notice form must be approved by the superintendent of insurance before it is distributed. The act takes effect January 1, 2027.
Impact
SB 21 changes state insurance law by adding a new mandatory consumer-protection framework for Medicare supplement policies, commonly known as Medigap. It expands guaranteed-issue rights for eligible Medicare beneficiaries age 65 and older, limits underwriting and pricing based on health factors during the annual enrollment period, and imposes notice and regulatory approval requirements on insurers. The bill affects insurance companies, fraternal benefit societies, nonprofit health care plans, HMOs, and other entities issuing Medicare supplement coverage in New Mexico.
Sentiment
The bill appears to have generally favorable support, reflected in strong final passage votes in both chambers and passage through the House Health & Human Services Committee. The Senate passed the bill unanimously, and the House passed it by a substantial margin, though not unanimously. The committee discussion provided in the record is limited and does not show extended debate, but the vote pattern suggests broad agreement on expanding access and portability for Medicare supplement coverage.
Contention
The main point of contention appears to be the scope of the guaranteed open enrollment and the restrictions on insurer underwriting and pricing, which may raise concerns among some lawmakers about market impact, premium effects, or insurer flexibility. That said, the available record shows only a few recorded no votes in the House committee and a 22-vote opposition bloc on final House passage, indicating some resistance, likely from members concerned about regulatory burden or insurance market consequences. No detailed objections are included in the provided transcript snippets.
In membership, contributions and benefits, providing for supplemental annuity commencing 2025 and for supplemental annuity commencing 2026; and, in benefits, providing for supplemental annuity commencing 2025 and for supplemental annuity commencing 2026.
Relating to retirement benefits for certain law enforcement officers who are members of the Teacher Retirement System of Texas, including the creation of a supplemental program retirement fund.
In membership, contributions and benefits, providing for supplemental annuity commencing 2025; and, in benefits, providing for supplemental annuity commencing 2025.