WeVote
Log In

Bill

Bill

HM 44

SCHOOL EMPLOYEE INSURANCE PREMIUM WORK GROUP

2025 Regular Session Introduced by Ray Lara

A 2025 interim working group would study rising school employee insurance premiums and how premium contributions relate to the Public School Insurance Authority Act to inform polic

action postponed indefinitely
#education #publicschools #memorials #other
0
WeVote Research Nonpartisan
Bill Summary · HM 44

HM 44 — School Employee Insurance Premium Work Group (Memorial)

Overview

  • Bill Number: HM 44
  • Title: School Employee Insurance Premium Work Group
  • Type: Memorial (no appropriation)
  • Introduced: February 26, 2025
  • Status: Action postponed indefinitely (as of June 3, 2025)
  • Primary purpose: Request the Legislative Education Study Committee (LESC) to convene a working group during the 2025 interim to study rising insurance premiums for school employees and the group insurance contributions provided under the Public School Insurance Authority Act.

What the bill would do

  • Establish a 2025 interim working group to examine:
    • Rising premiums for school employee health and related insurance.
    • How premium contributions are set and how they relate to the Public School Insurance Authority Act.
  • Include participating agencies and entities to inform the study:
    • Public Education Department
    • Department of Finance and Administration
    • General Services Department
    • New Mexico Public Schools Insurance Authority (NMPSIA)
    • School districts and charter schools
  • Produce findings and recommendations to inform future policy or legislative actions (the memorial itself does not authorize spending).

Background and context (from the LESC analysis)

  • NMPSIA operates a self-insured health plan covering medical, dental, vision, and prescription drugs, plus workers’ comp, property, liability, unemployment, and other risk coverage.
  • NMPSIA funds claims through employee and employer premiums and purchases excess risk coverage to mitigate large losses.
  • Albuquerque Public Schools is the only New Mexico district not participating in NMPSIA for employee health coverage.
  • Premium-setting dynamics:
    • NMPSIA’s board establishes premiums for the next year based on cost trends.
    • NMPSIA may request state funding via the SEG to assist LEAs with premiums; however, the NMPSIA board is not statutorily required to align premiums with SEG appropriations.
    • FY25 premiums rose notably: medical premiums up 15.25% (versus a 6.5% SEG-based appropriation); drivers include a 14.6% rise in prescription drug costs, policy changes costing ~$5.7 million, and plan migration to lower-cost options.
    • Risk premiums increased by 31.9%, driven by large claims from wind/hail, and sexual abuse/molestation claims.
    • Cost concentration: about 15% of enrollees account for roughly 83% of paid medical claims; 267 members accounted for about $60.5 million of claims in 2023.
  • These trends place financial pressure on districts and the state funding formula (SEG).

Key provisions and potential impact

  • Purpose: Facilitate a structured, interim study to understand and address rising premiums and the relationship to SEG contributions.
  • Scope: Examine drivers of medical and risk premium increases, policy changes affecting costs, and the effectiveness of current premium-setting and funding mechanisms.
  • Impact: Could inform future legislative or administrative actions to stabilize or reduce costs for school employers and employees, and to clarify or adjust how NMPSIA premiums relate to SEG funding.

Who would be affected

  • Public school employees enrolled in NMPSIA (and their districts/charter schools)
  • School districts and charter schools (costs and budgeting related to premiums)
  • State and local agencies involved in education funding and insurance programs (PED, DFA, GSD, NMPSIA)

Timeline and procedural notes

  • Committee/action: The memorial would be considered by the LESC to form a working group in the 2025 interim.
  • Fiscal impact: Memorials do not contain appropriations.
  • Status: Action postponed indefinitely as of June 3, 2025.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.