NM SB125

School districts and charter schools must contribute at least 80% of insurance costs for all employees, eliminating the previous tiered system based on salary levels ($50,000, $60,000 thresholds)

Beginning July 1, 2027, the Public School Insurance Authority board cannot grant waivers for health, disability income, or term life insurance to school districts and charter schools, requiring mandatory participation

State agencies providing employee health benefits must establish a reference-based pricing program for hospital services, with hospitals prohibited from charging plan members beyond the maximum payment set by the secretary of health care authority

Large school districts with student enrollment exceeding 60,000 students are removed from exclusions in the Health Care Purchasing Act and Public School Insurance Authority Act definitions

Sections 1, 4, and 5 take effect July 1, 2026; Sections 2 and 3 take effect July 1, 2027