Santa Fe, NM – The Office of Superintendent of Insurance (OSI) has been made aware of a lawsuit filed today by the Attorney General’s Office against several Presbyterian Health Plan companies. This recent development does not change OSI’s commitment to continue working with the Office of the State Auditor (OSA), the Department of Finance and Administration (DFA), and the Legislative Finance Committee (LFC) on the examination of premium tax assessments so that an appropriate and transparent collection process is instituted.
As we have shared in public hearings, in 2013, we requested an appropriation to perform an external audit of the premium tax collection process. In 2014, due to the transition of becoming an independent agency, we updated our appropriation request to allow ample time for completion and a legal review. In 2015, the audit was completed and highlighted areas of concern regarding processes and systems. Thus in 2016, our office, in cooperation with the OSA, DFA, and LFC, coordinated a request for proposals and selected an external audit firm that is currently examining the process.
The external in-depth examination is underway and remains on track for completion by September 30, 2017. We are hopeful that this lawsuit does not hinder our progress toward uncovering any and all premium tax underpayments due to the State of New Mexico. Although we cannot comment on the personal activities of our staff, we are encouraged that all of OSI’s personnel remain committed to serving the public through premium tax collection which is reinforced by the activities undertaken by our teams and the external auditor.
OSI’s commitment to confirming a statutorily-correct process for premium tax collection and working to collect all underpayments remains a priority.