SANTA FE, N.M. (AP) — Premiums for health insurance covering about 73,000 state and local government workers in New Mexico and their dependents could increase by 15 percent next year under a proposal by Gov. Susana Martinez’s administration.
Workers who cover their families under the health insurance program could see yearly premium increases of at least $315 to as much as $914, depending on their salaries and the choice of their health plan. Employees can select among several insurance providers and medical plans.
The General Services Department will ask the Legislature for $10.1 million in the next budget year to cover the higher rates paid by agencies as the government employer, agency spokesman Tim Korte said Tuesday.
Workers will pay about $3.2 million in higher premiums if they are implemented in the fiscal year starting July 1, 2013.
The state’s health insurance fund is projected to run out of money to pay claims in the next budget year without higher premiums.
“It was strictly a budgetary necessity because of rising health care expenses and a lack of money in the health insurance fund,” Korte said of the proposed premium increase.