Bill > HB271

This bill creates a new section in the New Mexico Insurance Code that formally defines and establishes legal parameters for health care sharing ministries (HCSMs). Specifically, the bill defines an HCSM as a faith-based, nonprofit organization that is tax-exempt, limits participation to people of similar faith, meets certain federal tax code requirements, and coordinates financial contributions among participants for medical needs. The bill requires HCSMs to operate with key distinctions from traditional insurance: they must suggest voluntary contribution amounts without assuming any risk or making promises to pay, provide monthly statements detailing submitted medical needs and participant contributions, and include a prominent disclaimer stating that the organization is not an insurance company and participation is entirely voluntary. Importantly, the bill explicitly states that health care sharing ministries shall not be considered insurers under the New Mexico Insurance Code, which means they would be exempt from typical insurance regulations. This legislation provides a clear legal framework for these faith-based medical cost-sharing organizations, ensuring transparency while maintaining their unique operational model that differs from conventional health insurance.

Health and Social Services

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=271&year=25