New Mexico Reinsurance

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New Mexico Health Insurance Alliance (Alliance) was created in 1994 by the state legislature to provide increased access to health insurance for small businesses, self-employed individuals, and other qualified individuals. The Alliance consists of independent health insurers and operates without medical or industry underwriting, sets yearly rates, and simplifies participation for employers. Carriers in the state are assessed an annual administrative fee withheld from gross premiums.  Costs not paid via premium assessments are collected from the carriers proportionately by market share.

Legislation passed in 2005 (HB 294) reduced premiums for small businesses by changing the Alliance premium structure.  The bill also expanded the Alliance’s responsibility for outreach, public awareness, and assistance to employers in obtaining and maintaining health insurance.

The Alliance is part of the Insure New Mexico! model.  It offers three types of broker-assisted comprehensive plans: PPO, Indemnity, and HMO through 11 participating commercial carriers. Employee and dependent share of premiums depend on employer contribution. Alliance policies are available to those who currently offer insurance coverage. It is available for employees and dependents of small businesses (2-50 employees), self-employed persons with at least one dependent, and individuals.