Rates are being cut for New Mexico workers’ compensation insurance premiums.
The state Insurance Department has approved overall workers’ compensation rate reductions of 4.2 percent for the voluntary market and 1.3 percent for the assigned risk pool, state officials said. The new rates are scheduled to take effect on Jan. 1.
“These rate reductions aid the New Mexico economy by making it more attractive to businesses, and they make it easier to purchase insurance to protect our workers,” said Alan Varela, director of the New Mexico Workers’ Compensation Administration.
New Mexico businesses recorded a 4.5 percent reduction in work-related accidents, according to the National Council on Compensation Insurance.
However, not all businesses will be eligible for workers’ compensation coverage premium reductions.
“Businesses with a poor safety record and a high number of severity of work-related injuries will continue to pay premiums based on their individual experience,” agency spokesman Van Cravens said in a news release.
In New Mexico, workers’ comp benefits are adjusted annually, and changes become effective Jan. 1 of each year. Employers may insure through private carriers, self-insurance or through groups of employers. There is an exemption for employers with fewer than three employees. There also is a competitive state fund.
Information can be found at: www.state.nm.us/ wca/
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