NMPED News:

SANTA FE — During a special meeting of the New Mexico Public Schools Insurance Authority (NMPSIA) Board of Directors on Friday, May 17, the Board voted to approve an amended 10% rate increase for educator medical benefits and 14.99% for risk coverage.

These amended rates are significantly lower than the anticipated rate increases announced by NMPSIA in March 2024, which included an increase of 15.53% for medical benefits and 31.86% for risk coverage.

The new, lower rate increases are the result of cross-agency collaboration between the New Mexico Public Education Department (NMPED), Legislative Finance Committee, New Mexico Department of Finance and Administration and NMPSIA. 

The proposed rate increase announcement in March was consistent with benefits and medical premium increases across all sectors. The adjusted rate increases represent a significant improvement over the originally planned increases.

“When our agency learned of the original rate increases in March, we recognized the burden they would place upon schools and educators,” Public Education Secretary Arsenio Romero said. “I thank our colleagues in state government, especially the NMPSIA Board, for their willingness to collaborate and place the needs of New Mexico’s educators at the forefront of their decision making.” 

Following the NMPSIA Board of Directors meeting in March, the PED organized a meeting with the Legislative Finance Committee, the Department of Finance and Administration and NMPSIA to discuss options for lowering the proposed rates. Subsequent meetings and discussions resulted in the formation of a subcommittee to investigate methods for lowering the rate increases. The subcommittee determined that rates could be lowered if all agencies understood NMPSIA will be submitting a special appropriation request during the 2025 Legislative Session to help offset expenditures for benefits and risk insurance.  

“Rate increases are an unfortunate inevitability; however, collaboration across state agencies helps to limit the impact on our members,” NMPSIA Board Executive Director Patrick Sandoval said. “This outcome underscores the power of teamwork and our shared commitment to protecting the interests of New Mexico educators.” 

NMPSIA will provide official notice of the amended rate increases to schools within the next few days. The medical increase will go into effect in October 2024. The risk increase will go into effect in July 2024. The final rate increases include: 10% rate increase for medical, 5% rate increase for dental, 3% rate increase for vision, and 14.99% rate increase for risk. Risk insurance is paid for by schools. Benefits insurance is split between the employee and the employer.

NMPSIA was created by the NM Legislature in 1986 to serve as a purchasing agency for public school districts, post-secondary educational entities and charter schools. Through NMPSIA, member schools are afforded the opportunity to offer quality employee benefit and risk coverages. 

Because of the purchasing power of NMPSIA’s partnership in the Interagency Benefits Advisory Committee, they are able to negotiate better premiums and better benefits than an individual school district. NMPSIA is able to offer employee benefits coverage to over 78,000 members and their families.