Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Sen. Stefanics/Rep. Lujan, T
LAST UPDATED
ORIGINAL DATE 1/31/2025
SHORT TITLE Medicare Supplement Open Enrollment
BILL
NUMBER Senate Bill 80
ANALYST Chenier
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
HCA
No fiscal
impact
No fiscal
impact
No fiscal
impact
Recurring General Fund
OSI
No fiscal
impact
No fiscal
impact
No fiscal
impact
Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Office of the Superintendent of Insurance (OSI) Health Care Authority (HCA)
SUMMARY
Synopsis of Senate Bill 80
Section 1 of Senate Bill 80 (SB80) amends the Insurance Code to define an eligible policy holder
as a Medicare beneficiary that is sixty-five years or older and is insured under a Medicare
Supplement insurance policy.
Section 2 adds a new subsection to the Insurance Code requiring issuers of Medicare Supplement
insurance policies to offer an annual open enrollment period to all eligible policy holders. The
open enrollment period is to begin on the first day of the policy holder’s birth month and remain
open for at least sixty days thereafter.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
Both the Office of the Superintendent of Insurance (OSI) and the Health Care Authority (HCA)
reported no fiscal impact for SB80.
Senate Bill 80 – Page 2
SIGNIFICANT ISSUES
OSI said that the legislation does not clarify if the policyholder notifications must be sent to OSI
for review and approval before being sent to the consumer. If prior approval is required, OSI
may see an increase in the number of filings submitted for review and approval. OSI does not
expect a negative impact on performance measures due to the increase in workload.
OSI also notes that the bill’s definition of “eligible policyholder” does not define “Medicare
beneficiary.” It may be prudent to specify that this only applies to Original Medicare and not to
Medicare Advantage.
OSI also notes the Legislature may want to consider amending the definition of “Medicare
Supplement policy” to also include the statement “individual or group policy certificate offered
by any other entities that deliver or issue for delivery in this state Medicare Supplement policies
or certificates” to ensure all entities are addressed, similar to the wording in 59A-24A-3 NMSA
1978
This bill allows for more balanced risk pools and would encourage a more stable Medicare
Supplement market. Currently, guaranteed issued Medicare Supplement policies are available
only at initial enrollment in a Medicare Supplement plan (i.e., generally at age 65). This means
that Medicare Supplement enrollees must undergo medical underwriting if they want to switch
issuers. This results in the deterioration of some Medicare Supplement risk pools as the healthy
enrollees can switch carriers and obtain new coverage by meeting underwriting standards and the
less healthy policyholders either have to stay in current coverage, with rising premiums, or
switch to a Medicare Advantage plan.
TECHNICAL ISSUES
OSI said that pursuant to 59A-7-3 NMSA 1978, issuers selling Medicare Supplement products
must have an “Accident and Health” license. An insurer licensed as a “Health Maintenance
Organization” (HMO) must also hold an “Accident and Health” insurance license in order to sell
Medicare Supplement plans. Therefore, it may be prudent to take out references to HMOs in the
Medicare Supplement Act, NMSA 1978, 59A-24A.
EC/hj/SL2/rl