SANTA FE – State aging and insurance officials are urging lawmakers to support Senate Bill 21 and strengthen consumer protections for Medicare enrollees who have Medigap coverage.
The bill would allow beneficiaries enrolled in Original Medicare and Medigap supplemental to change Medigap plans during an annual open enrollment period, preventing insurers from denying coverage based on pre-existing conditions. The bill is sponsored by Senators Liz Stefanics, Pete Campos, Rex Wilson, Martin Hickey, and Representative Tara Lujan.
“Everyone deserves access to quality healthcare—especially older adults who rely on stable coverage to age with dignity,” said Emily Kaltenbach, Aging Department secretary. “Medigap supplemental coverage helps safeguard people from unpredictable healthcare costs so they can remain independent and financially secure as they age.”
Medigap supplemental policies help Medicare beneficiaries enrolled in Original Medicare cover out-of-pocket costs including deductibles, copayments and coinsurance. New Mexico has more than 450,000 Medicare beneficiaries across Medicare Advantage and Original Medicare plans, including over 70,000 Medigap enrollees. For many older adults this supplemental coverage is essential to managing health costs and maintaining access to care.
Under current law, most Medicare beneficiaries can only enroll in Medigap during a one-time limited six-month window. After initial eligibility, federal rules do not address allowing policy holders to move between plans every year. Unless state law is amended, policyholders may have to stay in their original plan, potentially leaving them with a plan that does not meet their health needs and exposes them to unaffordable costs .
“This bill strikes an important balance between market stability and consumer protections and will deliver meaningful benefits for Medigap policyholders across New Mexico,” said Alice T. Kane, Superintendent of Insurance.
This bill aligns with national efforts to address these healthcare gaps. Across the U.S., 13 states have implemented similar laws that help protect beneficiaries from discriminatory underwriting practices.
“Without these protections, too many New Mexicans are forced to remain in plans that no longer meet their needs or face overwhelming out-of-pocket costs,” said Senator Liz Stefanics. “This legislation would ensure that the over 70,000 New Mexicans who rely on Medicap coverage can access the care they need as their health changes.”
If the bill passes, it will help modernize New Mexico’s Medicare Supplement Insurance (Medigap) laws and expand access to affordable, predictable health coverage for older adults across the state.