Higher Insurance Premiums Imposed for N.M. Workers

Workers who pay for insurance coverage only for themselves could face premium increases between $107 and $213 a year for a plan with high deductibles to as much as $155 to $310 a year for other plans, according to estimates from the department. Cost varies according to a worker’s salary.

The administration has the authority to set premiums, but Korte said the proposed rate increase is contingent upon legislative approval of the $10 million to pay the government’s share.

Despite rising health care expenses, insurance costs for government workers have remained unchanged in the past five years as the state struggled with budget shortfalls and tight finances. In private industry, Korte said, health insurance costs have increased an average of 7 percent to 9 percent annually during that same time.

The department, which administers the health insurance program, will outline its rate increase proposal to the Legislative Finance Committee at a meeting Thursday in Angel Fire.

Korte described the 15 percent rate increase as the most reasonable approach to shoring up the health insurance fund.

Several counties and municipalities provide health coverage to their employees through the state’s insurance program. It serves 43,361 state government workers and their dependents and 29,763 local governmentemployees and their dependents.