Surprising absolutely no one, continuing ObamaCare subsidies proving unsustainable

As New Mexico’s oil and gas boom continues, the State’s politicians continue to show themselves to be very adept at wasting money. The latest example involves the controversy over expiring “ObamaCare” subsidies. As a refresher, these subsidies (from the federal government) were given to people making more than 400% of the federal poverty level — equivalent to about $64,000 for an individual or $132,000 for a family of four. They were necessary because ObamaCare didn’t actually do anything to reduce health care costs. They were extended temporarily by the Biden Administration during COVID but the Trump Administration and Congress allowed them to expire.

But, New Mexico, in the throes of a massive revenue boom thanks to oil and gas, decided to pick up the tab for those subsidies and it is proving to be quite expensive. In fact, according to the LFC, total annual state spending on marketplace coverage increased by more than 600% between 2025 and 2026.

Here are a few takeaways:

1. ObamaCare is a bad law that should be repealed. Congress and the Administration should take a new look at actual health care reform that places patients in the role of fully-informed, price-sensitive consumers;
2. While New Mexico’s attempt to subsidize the costs of those making MORE THAN 400% of the federal poverty level may seem well-intentioned, these are NOT poor people. There is no reason we should be subsidizing them.
3. These subsidies are unaffordable and unsustainable even at a time of record state revenues.