An independent audit has revealed a list of insurance companies that have failed to pay taxes on insurance premiums – amounting to almost $65 million - to the state of New Mexico since 2003.
The audit, conducted by Atlanta-based Examination Resources, assessed the tax collection efforts at the Office of the Superintendent of Insurance for 30 insurers. It found that 17 of the 30 companies had unpaid taxes – chief among them was Presbyterian Health Plan, with an estimated $28.9 million in underpayments.
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State Auditor Tim Keller said that the new audit will allow the state to move forward with collecting the overdue taxes and prevent further underpayments.
“With this audit, we’ve pinpointed the precise amount that the state can seek from insurance companies,” Keller said.
Keller noted that the responsibility for collecting the premium taxes may be transferred from the Office of the Superintendent of Insurance to another agency.
The Associated Press reported that the audit also catalogued widespread oversight difficulties at the New Mexico Office of the Superintendent of Insurance. Three employees with the agency had filed a whistleblower lawsuit that mentioned the uncollected insurance premium taxes of Presbyterian Health Plan. The case is currently being pursued by state prosecutors.
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