US News
New Mexico to cover youth gender-affirming care with state funds following federal Medicaid cuts
The state plans to substitute federal Medicaid and CHIP funding set to end on October 13 using funds from its Health Care Affordability Fund.
The short version
- New Mexico plans to use state funds to continue covering gender-affirming medical care for minors after federal funding expires on October 13.
- The transition follows a finalized federal rule by the Trump administration ending Medicaid and CHIP funding for these services.
- State officials plan to utilize New Mexico's Health Care Affordability Fund, established in 2021, to absorb the funding gap.
- Approximately 61% of children in New Mexico are enrolled in Medicaid or CHIP, with UCLA's Williams Institute estimating that 4,800 transgender teens live in the state.
Key facts
- The Trump administration finalized a federal rule on August 13 ending Medicaid and Children's Health Insurance Program (CHIP) coverage for youth gender-affirming care starting October 13.[The Guardian]
- A spokesperson for New Mexico's Health Care Authority confirmed the state intends to maintain coverage for these treatments using state funds.[The Guardian]
- Governor Michelle Lujan Grisham pointed to the state's Health Care Affordability Fund, established in 2021, as the source for backfilling lost federal funding.[The Guardian]
- According to CMS, 41.4% of New Mexico residents are enrolled in Medicaid or CHIP, and KFF estimates 61% of children in the state rely on those programs.[The Guardian]
- The Williams Institute at UCLA estimates that 4,800 transgender youth aged 13 to 17 reside in New Mexico.[The Guardian]
What remains uncertain
- The long-term fiscal impact on New Mexico's Health Care Affordability Fund and the exact mechanism for state-only reimbursement under Medicaid administration remain unverified.[The Guardian]