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HOUSE BILL 575
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Linda Serrato
AN ACT
RELATING TO STATE EMPLOYEE BENEFITS; AMENDING THE CONTRIBUTION
PERCENTAGES FOR STATE EMPLOYEE HEALTH BENEFITS; AMENDING THE
GROUP INSURANCE CONTRIBUTIONS FOR SCHOOL DISTRICTS, CHARTER
SCHOOLS AND PARTICIPATING ENTITIES IN THE PUBLIC SCHOOL
INSURANCE AUTHORITY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 10-7-4 NMSA 1978 (being Laws 1941,
Chapter 188, Section 1, as amended) is amended to read:
"10-7-4. GROUP INSURANCE--CAFETERIA PLAN--CONTRIBUTIONS
FROM PUBLIC FUNDS.--
A. All state departments and institutions and all
political subdivisions of the state, excluding municipalities,
counties and political subdivisions of the state with twenty-
five employees or fewer, shall cooperate in providing group
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term life, medical or disability income insurance for the
benefit of eligible employees or salaried officers of the
respective departments, institutions and political
subdivisions.
B. The group insurance contributions of the state
or any of its departments or institutions, including
institutions of higher education, shall be made as follows:
(1) at least seventy-five percent of the cost
of the insurance of an employee whose annual salary is less
than fifteen thousand dollars ($15,000);
(2) at least seventy percent of the cost of
the insurance of an employee whose annual salary is fifteen
thousand dollars ($15,000) or more but less than twenty
thousand dollars ($20,000);
(3) at least sixty-five percent of the cost of
the insurance of an employee whose annual salary is twenty
thousand dollars ($20,000) or more but less than twenty-five
thousand dollars ($25,000); and
(4) at least sixty percent of the cost of the
insurance of an employee whose annual salary is twenty-five
thousand dollars ($25,000) or more.
C. The group insurance contributions of school
districts and charter schools shall be made as follows:
(1) at least eighty percent of the cost of the
insurance of an employee whose annual salary is less than fifty
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thousand dollars ($50,000);
(2) at least seventy percent of the cost of
the insurance of an employee whose annual salary is fifty
thousand dollars ($50,000) or more but less than sixty thousand
dollars ($60,000); and
(3) at least sixty percent of the cost of the
insurance of an employee whose annual salary is sixty thousand
dollars ($60,000) or more.
D. Effective July 1, 2004, the group insurance
contributions of the state or any of its executive, judicial or
legislative departments, including agencies, boards or
commissions, shall be made as follows; provided that the
contribution percentage shall be the same for all affected
public employees in a given salary bracket:
(1) up to eighty percent of the cost of the
insurance of an employee whose annual salary is less than
thirty thousand dollars ($30,000);
(2) up to seventy percent of the cost of the
insurance of an employee whose annual salary is thirty thousand
dollars ($30,000) or more but less than forty thousand dollars
($40,000); and
(3) up to sixty percent of the cost of the
insurance of an employee whose annual salary is forty thousand
dollars ($40,000) or more.
E. [Except as provided in Subsection H of this
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section] Effective July 1, [2005 ] 2025, the group insurance
contributions of the state or any of its executive, judicial or
legislative departments, including agencies, boards or
commissions, shall be [made as follows; provided that the
contribution percentage shall be the same for all affected
public employees in a given salary bracket;
(1) up to eighty percent of the cost of the
insurance of an employee whose annual salary is less than fifty
thousand dollars ($50,000);
(2) up to seventy percent of the cost of the
insurance of an employee whose annual salary is fifty thousand
dollars ($50,000) or more but less than sixty thousand dollars
($60,000); and
(3) up to sixty percent of the cost of the
insurance of an employee whose annual salary is sixty thousand
dollars ($60,000) or more
F. Effective July 1, 2013, the employer shall pay
one hundred percent of basic life insurance premiums for
employees, and employees who choose to carry disability
insurance shall pay one hundred percent of the premium.
G. The state shall not make any group insurance
contributions for legislators. A legislator shall be eligible
for group benefits only if the legislator contributes one
hundred percent of the cost of the insurance.
H. An employer shall pay one hundred percent of the
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employee group insurance contributions due and payable on or
after July 1, 2016 for an employee who is injured while
performing a public safety function or duty and, as a result of
the injury, is placed on approved workers' compensation leave.
I. As used in this section, "cost of the insurance"
means the premium required to be paid to provide coverages.
Any contributions of the political subdivisions of the state,
except the public schools and political subdivisions of the
state with twenty-five employees or fewer, shall not exceed
sixty percent of the cost of the insurance.
J. When a public employee elects to participate in
a cafeteria plan as authorized by the Cafeteria Plan Act and
enters into a salary reduction agreement with the governmental
employer, the provisions of Subsections B through G of this
section with respect to the maximum contributions that can be
made by the employer are not violated and will still apply.
The employer percentage or dollar contributions as provided in
Subsections B through E of this section shall be determined by
the employee's gross salary prior to any salary reduction
agreement.
K. Any group medical insurance plan offered
pursuant to this section shall include effective cost-
containment measures to control the growth of health care
costs. The responsible public body that administers a plan
offered pursuant to this section shall report annually by
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September 1 to appropriate interim legislative committees on
the effectiveness of the cost-containment measures required by
this subsection.
L. Within available revenue, school districts,
charter schools and participating entities pursuant to the
Public School Insurance Authority Act may contribute up to one
hundred percent of the cost of the insurance of all employees
and institutions of higher education may contribute up to
eighty percent of the cost of the insurance of all employees ]
eighty percent of the cost of insurance ."
SECTION 2. Section 22-29-10 NMSA 1978 (being Laws 1989,
Chapter 373, Section 5, as amended) is amended to read:
"22-29-10. GROUP INSURANCE CONTRIBUTIONS.--
A. Group insurance contributions for school
districts, charter schools and participating entities in the
authority shall be [made as follows:
(1) at least eighty percent of the cost of the
insurance of an employee whose annual salary is less than fifty
thousand dollars ($50,000);
(2) at least seventy percent of the cost of
the insurance of an employee whose annual salary is fifty
thousand dollars ($50,000) or more but less than sixty thousand
dollars ($60,000); and
(3) at least sixty percent of the cost of the
insurance of an employee whose annual salary is sixty thousand
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dollars ($60,000) or more ] eighty percent of the cost of
insurance.
B. Within available revenue, school districts,
charter schools and participating entities in the authority may
contribute up to one hundred percent of the cost of the
insurance of all employees.
C. Whenever a school district, charter school or
participating entity in the authority offers to its employees
alternative health plan benefit options, including health
maintenance organizations, preferred provider organizations or
panel doctor plans, the school district, charter school or
participating entity may pay an amount on behalf of the
employee and family member for the indemnity health insurance
plan sufficient to result in equal employee monthly costs to
the cost of the health maintenance organization plans,
preferred provider organization plans or panel doctor plans,
regardless of the percentage limitations in the Public School
Insurance Authority Act. School districts, charter schools and
participating entities in the authority may pay up to one
hundred percent of the first fifty thousand dollars ($50,000)
of term life insurance."
SECTION 3. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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