Medigap Bill Passes House, Heads to Governor’s Desk

State Agency Press Release – From the New Mexico Aging Department

SANTA FE – A bill giving more than 70,000 New Mexicans who rely on Medicare supplement insurance to cover out-of-pocket health costs the freedom to change their coverage each year—without risking denial over pre-existing conditions – passed the House late Tuesday and heads to the governor’s desk.

Senate Bill 21, sponsored by Senators Wilson, Woods, Campos, Hickey, Stefanics and Representative Szczepanski, establishes a “birthday rule” for Medicare supplement insurance (Medigap) policyholders.

The measure allows eligible enrollees to switch to a plan with equal or lesser benefits each year around their birthday without undergoing medical underwriting.  

The reform would ensure older adults are not locked out of Medigap coverage that no longer meets their needs and protects them from being denied new coverage due to pre-existing conditions.

“As New Mexicans age, their health and financial needs often evolve,” said Emily Kaltenbach, Aging Department secretary. “This legislation protects older adults from being locked into a plan that no longer meets those needs and allows them to be able to make choices that best suit their health, independence, and finances.”

“Medigap coverage plays a significant role in protecting New Mexicans from high out-of-pocket healthcare costs,” said Alice T. Kane, Superintendent of Insurance.

“The new rule allows eligible existing policyholders an annual sixty-day window beginning on the first day of their birthday month, to adjust their coverage as needed, while helping promote a more stable and competitive Medigap insurance market.”

“This legislation ensures older New Mexicans are not penalized simply because their health needs change,” said Senator Rex Wilson. “This is common-sense reform that removes unnecessary barriers, increases consumer choice, and ensures the Medigap marketplace works better for the people it serves.”

California, Nevada, Oklahoma and Maryland, have implemented similar protections, demonstrating that strong consumer guardrails can expand choice while preserving market stability.  

By aligning New Mexico with these best practices, Senate Bill 21 reflects a growing national recognition that strong consumer protections can support a balanced risk pool, encourage competition among insurers, and reduce financial strain for older adults living on fixed incomes.

The New Mexico Aging and Long-Term Services Department worked closely with the Office of the Superintendent of Insurance as well as lawmakers, advocates, and stakeholders to advance this measure during the 2026 legislative session.

If signed, the new protections will provide the over 70,000 New Mexicans who are enrolled in Medigap with greater peace of mind and a fair opportunity each year to secure coverage that best meets their needs.

The bill passed the House on a 41-22 vote after a 6-4 vote in the House and Human Services Committee on Monday and now heads to the Governor’s desk for signature.

The New Mexico Aging & Long-Term Services Department (ALTSD) was established in 2004 to provide resources, connection and advocacy for seniors and adults with disabilities.

The department oversees the state’s Area Agencies on Aging to elevate the quality of care at senior centers, offers advocacy through the Long-Term Care Ombudsman volunteer program, and provides intervention through the agency’s national award-winning Adult Protective Services.

Additionally, ALTSD houses the state’s Aging and Disability Resource Center, which offers options counseling, education, and connection to resources. For more information about ALTSD, visit aging.nm.gov or follow us on Facebook, X (Twitter), and Instagram@NewMexicoAging