Walt Rubel: Sneaky health care costs about to go up again

When the cost of gas goes up, there are big signs along the roadway announcing the hike. The signs in the grocery store aren’t as big, but increases in the cost of food are clearly marked for all to see.

When the cost of health care goes up, as it just did … again, it’s not as obvious.

The New Mexico Office of the Superintendent of Insurance recently announced that premiums will increase by an average of 24.4 percent for residents covered by the state’s BeWell NM plan.


“Despite the rate increase, I can assure you that the rates for all insurance companies are actuarially sound, non-discriminatory and transparent,” OSI Superintendent Alice Kane said in a prepared statement.


Transparent … is she kidding? Nothing about this process is at all transparent. I certainly don’t claim to have a handle on it. But, as best as I understand it, here’s what happened.


In July, 2025 Congress passed HR1, formerly known as the Big Beautiful Bill. It will reduce federal spending on health care by about $1.15 trillion over the next decade. That is the largest cut in the history of the Medicaid and Medicare programs, and shifts the burden to the states.


New Mexico, which was the only state with a Republican governor to sign on to the Affordable Care Act when it was passed, was also the only state to respond to HR1 by fully replacing the federal tax credits that expired in 2025.


The Legislature held a special session in October to free up $162 million, then passed legislation during the regular session to add another $366 million to the Health Care Affordability Fund.


“Our state Legislature made nation-leading investments over the past year to keep health care coverage affordable for New Mexicans amid federal chaos. Yet, the OSI approved an increase of nearly 10 percent above the national average,” complained House Finance Committee Chairman Nathan Small.


The problem, Kane said, is that New Mexico has “uniquely comprehensive benefits.” Right. If we would just kick a few more people off the system this would all work out actuarially, where it really matters.


The Affordable Care Act isn’t working. It’s estimated that our largest health insurance companies have raked in more than $9 trillion in revenue since its passage. That's way too much of our health care budget going to pencil pushers who don’t provide health care.


The ACA was an attempt to provide universal care while still staying within the framework of the free market. But, it didn’t account for the greed.


And, Republicans are no closer to announcing their health care plan than they were when Barack Obama was in office and they were clamoring for “repeal and replace” without any agreement on how to replace it. Now, they want us to believe that $1.15 trillion in cuts will only impact unemployed slackers living in their parents’ basement.


It’s time to acknowledge that other nations have it right. Public health is not a commodity to be bought and sold at whatever price the market will bear. It is a vital service that the state must provide to ensure the common good.


Winston Churchill gets credit for the famous quote, “Americans can always be counted on to do the right thing … after they have exhausted all other possibilities.” We ought to be getting there soon when it comes to the delivery of health care.


Walter Rubel can be reached at [email protected]

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