New Mexico Superintendent of Insurance Alice Kane on Wednesday defended her decision to approve a significant health insurance rate increase before members of the powerful Legislative Finance Committee.
Kane on Sept. 1 OK’d an average rate increase of 24.4% for 2027 individual insurance plans sold on and off BeWell, the state health insurance exchange established by the federal Affordable Care Act. More than 84,000 New Mexicans — a new record — sought health coverage through BeWell during open enrollment in late 2025 and early 2026.
The 2027 increase is lower than the 36% average rate hike Kane approved last year, but it nonetheless outpaces the nationwide median of 15%.
“I’m not looking forward to paying 24% more, either, but the rates that we approve are actuarially justified based on the data that is submitted and matches the audited financial statements,” Christian Myers, chief actuary for the Office of the Superintendent of Insurance, told state lawmakers.
The discussion comes after the Legislative Finance Committee chair, Las Cruces Democratic Rep. Nathan Small, slammed Kane’s approval of the higher rates as “shocking and deeply disappointing,” given major legislative investments this year to make healthcare more affordable.
In particular, lawmakers passed a bill to increase revenue distributions from the state Health Care Affordability Fund, one of the main tools New Mexico uses to subsidize premium costs for customers who purchase individual coverage through BeWell. Absent changes in program costs or eligibility, however, the Health Care Affordability Fund may be insolvent by fiscal year 2028, according to a Legislative Finance Committee analysis released Aug. 25.
However, Kane and her team explained there’s a specific process, required by law, for reviewing and determining premium costs.
The “starting point” in that process is reviewing claims data from 2025 and projecting those costs into 2027, Myers said. Rising healthcare costs, increased use of services like behavioral healthcare and weight-loss drugs, and New Mexico’s sicker-than-average population all contributed to costlier 2027 projections.
The Office of the Superintendent of Insurance doesn’t just take insurance companies’ word for it, either. Prior to approving the 24% average increase, the agency objected to insurance carriers’ rate increases 128 times, requiring answers and additional documentation from the companies, said Product Filing Bureau Chief Brittany O’Dell.
“We’re looking at the actual costs that are coming through. … We’re trying to push down as much as we can to get the data, but inflation’s an issue. Health costs have gone up. The kind of pharmaceuticals that people are using are the more expensive ones,” Kane said.
While the superintendent’s explanation offered an inside look into the process for approving rate increases, it didn’t relieve all of lawmakers’ frustration with the current state of health insurance in New Mexico.
“When we talk about 24%, I want to know who to call out — publicly, in front of constituents [who] can’t hardly pay their premiums,” said Rep. Harlan Vincent, a Republican from Glencoe.
He continued, “I want to know who’s making the money and why our New Mexico citizens and residents are shouldering the burden, when we’re having these huge profits.”
Sen. George Muñoz, a Gallup Democrat, described the increase as getting “raked over the coals” by insurance companies.
“We’ve got to get some cost containment and cost control,” he said of the state’s healthcare spending.
Small said he appreciated greater detail on the agency’s methodology and encouraged the insurance superintendent to solicit public comment prior to approving the rate hikes — something Kane said her team is “certainly willing” to add into the process.
“Amongst the many concerning things with the announcement was sort of the lack of context, lack of information. … If there’s a chance to reopen, post for public comment … I would ask for that,” Small said.
Margaret O’Hara reports on issues affecting healthy communities in New Mexico. Her work is funded by a grant from Anchorum Health Foundation. Anchorum will not have any role in editorial decisions. The New Mexican and its Public Service Journalism Fund retain full editorial control. Philanthropically funded stories by The New Mexican are made available to all readers without a paywall.
