Gov. Susana Martinez's administration is proposing a 15 percent increase in premiums for health insurance covering about 73,000 state and local government workers and their dependents.
General Services Department spokesman Tim Korte said Tuesday the agency will ask the Legislature for $10 million next year to cover higher rates proposed for government agencies. Worker premiums will go up about $3 million if the rate increase is implemented in the fiscal year starting July 2013.
Korte said the proposal is contingent upon legislative approval of the $10 million.
Health insurance premiums for government workers have remained unchanged in the past five years as the state faced tight budgets.
Korte said the state's health insurance fund will run out of money to pay claims in the next budget year without higher premiums.