NEW MEXICO (KRQE) – A new report for the Legislative Finance Committee said some state agencies will be seeing a hike in their liability insurance rates.
According to the General Services Department, those rates have been rising steadily over the last two years.
CYFD, University of New Mexico and its hospital, and NMSU are expected to have their rates increase by more than 40%. The Corrections Department is expected to see a 70% increase.
The report said the rate increase is because those agencies have a history of paying large amounts of money to settle claims.
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“As we’re thinking about what do the rates look like in this specific setting, we’re working with cms and others to develop actuarially sound rates, claiming protocols, identifying the provider types in these settings, and then refining any contract language that may need to be refined and revised,” stated Haven Scogin with NM Corrections Department.
The report claimed that the state will need to fork over an additional $17 million to cover the increased rates for all state agencies.