Bill > SB520

This bill modifies New Mexico's health insurance premium surtax law by specifically excluding dental-only, vision-only, and dental and vision-only insurance contracts from being subject to the existing 3.75% surtax. Currently, the state imposes a health insurance premium surtax on gross health insurance premiums for hospital, medical, and other health-related insurance contracts. The bill removes language that previously included these types of contracts in the surtax calculation, effectively reducing the tax burden for insurers offering standalone dental or vision insurance plans. The changes will take effect on January 1, 2026, giving insurance companies and state tax authorities time to prepare for the new tax treatment. By carving out these specific types of insurance contracts from the surtax, the legislation aims to potentially make dental and vision coverage more affordable or attractive for consumers by reducing the associated tax costs for insurers.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=520&year=25