NMRHCA was established in 1990 to provide health care coverage to retirees of state agencies and eligible participating public entities.
Approximately 302 public entities including cities, counties, universities and charter schools participate in NMRHCA. The agency provides medical plans for both non-Medicare and Medicare-eligible retirees and their dependents as well as dental, vision and life insurance. The Authority currently provides coverage to approximately 64,000 retirees and their dependents. The Authority is governed by an 11-member Board of Directors.
NMRHCA has made significant strides over the past few years to address short- and medium-term financing and administrative challenges. The Authority has extended its solvency period through 2050, up from 2014 just 13 years ago, by aggressively adjusting subsidy levels, premiums and plan designs, while obtaining a legislative increase in the employer/employee contribution. The Authority’s investment funds have begun to recover after several difficult years resulting from the economic downturn. As of December, 2020, NMRHCA is 16.5% funded, with an unfunded liability of just more than $5 billion.
Still, NMRHCA is projected to start deficit spending in the next two or three years, meaning the agency will have to start dipping into its $924 million trust fund to pay rising health care costs for its members. NMRHCA has asked the legislature five times in the last seven years for an increase in the employer-employee contributions (currently, employees pay 1% of their salary to NMRHCA; employers pay 2%. Members of enhanced plans — police, firefighters, corrections officers and some judges pay 1.25% while their employers pay 2.5%). We have yet to secure an increase to be able to put the agency on a solid long-term footing.
You are Eligible to Receive Benefits
You are eligible to receive NMRHCA benefits if you retired from a participating employer, and you and your employer contributed to the NMRHCA fund for at least five years.
The New Mexico Retiree Health Care Authority fosters quality of life and peace of mind by responsibly administering affordable, secure health care benefits for public retirees and their families.