In- Focus: Lapse of health insurance coverage; 25 % benefit payments
(Settlement Fund) – On Friday, the Settlement Fund issued an update to all its members concerning the potential lapse of retirees’ health insurance coverage and the upcoming discontinuation of 25% benefit payments by the NMI government after December 31, 2025.
On the lapse of health insurance coverage for 2026, following the Settlement Fund’s November 21, 2025, press release, the legislature has initiated discussions regarding funding for retirees’ health insurance coverage. On December 5, 2025, the House of Representatives formally introduced and passed House Bill 24-75, which proposes to authorize $2.8 million for Group Health and Life Insurance for retirees, leaving an unfunded balance of $4.4 million.
The $2.8 million appropriation is not sufficient to cover the full cost of the retiree health insurance for FY 2026.
Without a revised budget to fully fund retirees’ health insurance, and clarification of the duration of health insurance coverage covered by the $2.8 million, the risk of default and termination of the Aetna health insurance is almost certain. “Therefore, we urge all retirees to contact your representatives and proactively explore alternative health insurance options and determine your eligibility for other health insurance options:
Contact Information Website
Health Insurance Marketplace
Contact information: 1-800-318-2596
Website: https://www.healthcare.gov/
Medicaid
(670) 664-4880
info@cnmimedicaid.org
https://www.cnmimedicaid.org/
Medicare
1-800-772-1213
https://www.ssa.gov/medicare
On the discontinuation of 25% payments, the Settlement Fund was informed by the government that there is no funding for the 25% payments beyond December 31, 2025. This means the 25% payments from the Government will cease on January 1, 2026.
“We remain in active communication with the government regarding health insurance coverage and will update Settlement Fund members of any new developments.”
