SENATE BILL 540

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Manny M. Aragon

AN ACT

RELATING TO INSURANCE; IMPOSING A RISK ADMINISTRATION FEE ON CERTAIN THIRD PARTY ADMINISTRATORS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of Chapter 59A, Article 12A NMSA 1978 is enacted to read:

     "[NEW MATERIAL] RISK ADMINISTRATION FEE--IMPOSITION--PAYMENT.--

          A. A "risk administration fee" is imposed on each third party administrator that performs services for any person that self insures against health risks. The rate of the fee is:

                (1) for the fiscal year beginning July 1, 2004:

                     (a) ten dollars forty cents ($10.40) per month for each individual covered during any day of that month under the single coverage portion of the self-insurance program;

                     (b) twenty-four dollars twenty-seven cents ($24.27) per month for each couple covered during any day of that month under the couple coverage portion of the self-insurance program; and

                     (c) twenty-eight dollars seventy-seven cents ($28.77) per month for each family covered during any day of that month under the family coverage portion of the self- insurance program; and

                (2) for any subsequent fiscal year, the applicable rate for the previous fiscal year adjusted by the percentage change, during the immediately preceding calendar year, in the consumer price index for medical care services, as published by the United States department of labor.

          B. The superintendent shall collect the risk administration fee and may adopt such rules as are necessary to ensure the proper collection and accounting of the fee.

          C. The risk administration fee shall be paid to the insurance department no later than April 15 for all fees due for the first quarter of each calendar year, July 15 for all fees due for the second quarter, October 15 for all fees due for the third quarter and January 15 for all fees due for the fourth quarter."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2004.

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