In a recent meeting of the New Mexico Legislature's Legislative Education Study Committee, pressing issues surrounding public school insurance took center stage. The discussion, led by Daniel from the LESC, highlighted the alarming rise in health and risk insurance premiums affecting public schools across the state.

As the meeting unfolded, Daniel emphasized the significant increases in insurance costs, noting that medical premiums have surged over 80% since fiscal year 2015, while risk premiums have risen by approximately 70%. These trends are not isolated to New Mexico; they reflect a national pattern driven by various factors, including the rising costs of treating chronic conditions and the financial impacts of the COVID-19 pandemic.

The committee was informed that NIMSIA, the primary provider of medical and risk coverage for public schools, has faced challenges in managing these escalating costs. Daniel pointed out that while the total amount paid to NIMSIA for insurance has decreased as a proportion of program costs, the need for adequate funding remains critical. He urged lawmakers to consider supplemental appropriations to support local education agencies in covering these rising premiums without compromising the quality of education or the ability to attract skilled staff.

Patrick Sandoval, director of NIMSIA, further elaborated on the financial landscape, revealing that the authority is seeking an 18.54% increase in benefits and a 16.28% increase in risk expenditures for fiscal year 2026. This request is driven by the need to address a projected deficit in the risk fund balance and to mitigate the impact of increased claims, particularly from natural disasters and chronic health issues.

The meeting also touched on the collaborative efforts between various state departments to manage these increases. After initial proposals for steep premium hikes, negotiations led to a more moderate increase of 10% for medical and 15.5% for risk premiums. However, the expectation remains that further appropriations will be necessary to stabilize the financial situation.

As the committee prepares for the upcoming legislative session, the discussions underscored the urgent need for strategic planning and funding to ensure that public schools can continue to provide quality education while navigating the complexities of rising insurance costs. The implications of these decisions will resonate throughout the educational landscape in New Mexico, affecting not only financial stability but also the overall well-being of students and staff.