Enacted in 1987, the New Mexico Medical Insurance Pool (NMMIP) received significant changes in the 2002 and 2003 sessions of the New Mexico legislature. 

Under the new legislation, NMMIP became the only state to include assessments on the premiums collected by the managed cares services to persons on Medicaid.  This expanded assessment resulted in a more than 50 percent reduction in the assessments to the commercial insurance carriers.  Carriers continue to receive a 30 percent tax credit for their assessments for funding of the pool.

Through this legislation, NMMIP also became the only state pool authorized to sell a pharmacy benefit to seniors who cannot purchase a similar pharmacy policy in the private market.  The pool can, if federally allowable issue a policy to senior Medicaid recipients as well.  This program can be established as a pilot program, and the NMMIP board has the authority to determine rates, benefits and eligibility.  Any assessments to insurers for this program shall receive a 50 percent premium tax credit from the state.

Additionally, the 2003 legislation allows a person to become eligible for NMMIP if their current premium in the private market is 125 percent of the standard risk rate for a healthy individual, which the Pool uses as a basis in establishing it premium rates.  Thereby the Pool can set its premiums closer to a standard risk rate without competing with the private market.

The 2003 legislation also added a board member from the medical community, and allows the Pool to establish a qualifying list of medical condition as an additional means of automatic eligibility.