New Mexico warns Medicaid members of work requirements and other coverage changes
About 200,000 New Mexicans have received turquoise envelopes explaining federal Medicaid changes that begin Oct. 1, with work requirements and more frequent renewals taking effect in January.
New Mexico officials are urging Medicaid members to read their mail carefully as the state prepares to implement sweeping federal changes that could affect health coverage for some customers.
In September, New Mexico Medicaid began mailing letters to adults who may be subject to new work or activity requirements. About 200,000 New Mexicans have received a turquoise envelope containing information about the changes, state officials said Wednesday.
“It’s so important to read the information in there because the federal changes to Medicaid are coming,” New Mexico Department of Workforce Solutions Cabinet Secretary Sarita Nair said.
Not every Medicaid member will be affected. However, officials said members should keep their contact and personal information current, watch for notices and respond promptly when asked for documentation.
“We’ve never had Medicaid customers have to work to receive benefits before, so this is a very large change,” Health Care Authority Deputy Secretary Niki Kozlowski said. “We want to make sure that as many eligible New Mexicans remain with benefits as possible.”
Immigration eligibility changes begin Oct. 1
Starting Oct. 1, 2026, some lawfully present immigrants who are currently enrolled in Medicaid will no longer qualify under the federal rules.
The noncitizens who will remain eligible include:
- Lawful permanent residents, who may be required to complete a waiting period
- Cuban and Haitian entrants
- Citizens of the Compact of Free Association states
- Lawfully residing children younger than 21
- Lawfully residing pregnant people
New Mexico says it is creating a program for people who currently receive Medicaid but may lose coverage, including refugees, asylum recipients, trafficking survivors, humanitarian parolees and other noncitizens.
Affected members will receive information from BeWell New Mexico beginning Oct. 1.
Work and activity requirements begin Jan. 1
Beginning Jan. 1, 2027, many Medicaid members between ages 19 and 64 will be required to complete at least 80 hours of qualifying work or activities during a month.
Qualifying activities can include:
- Working
- Volunteering or performing community service
- Attending school at least half-time
- Participating in job or career training
- Taking part in an approved workforce program
- Earning at least $580 per month
- Working seasonally and earning at least $580 over six months
Members may combine activities to reach the 80-hour requirement.
Adults applying for Medicaid for the first time may need to complete 80 hours during the month before applying. Existing members may be asked at renewal to prove they completed the requirement during any month since their previous renewal.
Who is exempt?
Work requirements do not apply to several groups, including:
- Foster youth and former foster youth younger than 26
- American Indians and Alaska Natives
- Parents or caregivers of children age 13 or younger
- Caregivers for people with disabilities
- Veterans with a 100% disability
- People considered medically frail or with special medical needs
- People subject to TANF or SNAP work rules
- People in drug or alcohol treatment programs
- People in jail or prison
- Pregnant people and those receiving postpartum care
Members who believe they qualify for an exemption should report it during renewal.
Other members may not need to report hours until their next renewal, including people enrolled in Medicare, those receiving inpatient or nursing facility care, people released from jail or prison within the previous three months and people living in counties with a federal disaster declaration or high unemployment.
Job centers offer free assistance
New Mexico has 24 America’s Job Centers that can help residents find jobs, training and volunteer opportunities. The centers also offer free computer access and assistance with résumés and job applications.
“Don’t get overwhelmed. Don’t feel like you have to do this by yourself. We are here to help,” Nair said. “We can help you find a job. We can help you find training. We can help you find a volunteer opportunity.”
Michelle Velarde, director of the Department of Workforce Solutions’ Employment Services Operations Division, said every center has a computer resource room available to the public.
“You can come into our offices and use our computers and our services for free,” Velarde said.
People seeking résumé assistance are encouraged to bring a list of contacts and their previous employment dates.
Changes can be reported through YES.NM.GOV. Members can also use the website’s chat service or call New Mexico Medicaid at 1-800-283-4465.
