45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO PUBLIC EMPLOYEE GROUP INSURANCE; RAISING THE PUBLIC EMPLOYEE SALARY BRACKETS USED TO DETERMINE EMPLOYER INSURANCE PREMIUM CONTRIBUTION LEVELS; AMENDING SECTIONS OF THE NMSA 1978.

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 term life, medical or disability income insurance for the benefit of eligible employees or salaried officers of the respective departments, institutions and subdivisions.

B. The group insurance contributions of the state or any of its departments or institutions, including institutions of higher education and the public schools, shall be made as follows:

(1) seventy-five percent of the cost of the insurance of an employee whose annual salary is less than [fifteen thousand dollars ($15,000)] twenty-two thousand five hundred dollars ($22,500);

(2) seventy percent of the cost of the insurance of an employee whose annual salary is [fifteen thousand dollars ($15,000)] twenty-two thousand five hundred dollars ($22,500) or more but less than [twenty thousand dollars ($20,000)] twenty-seven thousand five hundred dollars ($27,500);

(3) sixty-five percent of the cost of the insurance of an employee whose annual salary is [twenty thousand dollars ($20,000)] twenty-seven thousand five hundred dollars ($27,500) or more but less than [twenty-five thousand dollars ($25,000)] thirty-two thousand five hundred dollars ($32,500); or

(4) sixty percent of the cost of the insurance of an employee whose annual salary is [twenty-five thousand dollars ($25,000)] thirty-two thousand five hundred dollars ($32,500) or more.

As used in this subsection, "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.

C. 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 provision of Subsection B 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 Subsection B of this section shall be determined by the employee's gross salary prior to any salary reduction agreement.

D. 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 September 1 to appropriate interim legislative committees on the effectiveness of the cost-containment measures required by this subsection."

Section 2. Section 22-2-6.10 NMSA 1978 (being Laws 1989, Chapter 373, Section 5, as amended) is amended to read:

"22-2-6.10. GROUP INSURANCE CONTRIBUTIONS.--

A. Group insurance contributions for school districts, charter schools and participating entities in the authority shall be made as follows:

(1) seventy-five percent of the cost of the insurance of an employee whose annual salary is less than [fifteen thousand dollars ($15,000)] twenty-two thousand five hundred dollars ($22,500);

(2) seventy percent of the cost of the insurance of an employee whose annual salary is [fifteen thousand dollars ($15,000)] twenty-two thousand five hundred dollars ($22,500) or more but less than [twenty thousand dollars ($20,000)] twenty-seven thousand five hundred dollars ($27,500);

(3) sixty-five percent of the cost of the insurance of an employee whose annual salary is [twenty thousand dollars ($20,000)] twenty-seven thousand five hundred dollars ($27,500) or more but less than [twenty-five thousand dollars ($25,000)] thirty-two thousand five hundred dollars ($32,500); or

(4) sixty percent of the cost of the insurance of an employee whose annual salary is [twenty-five thousand dollars ($25,000)] thirty-two thousand five hundred dollars ($32,500) or more.

B. Whenever a school district, charter school or participating entity in the authority offers to its employees alternative health plan benefit options, including [but not limited to] 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 [organizations] 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."