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Low Workers' Compensation Costs

New Mexico's Workers' Compensation System performs extremely well. New Mexico has the 25th-lowest workers' compensation rates in the U.S.

The calculated loss ratio in New Mexico is based on business written in the state divided by premiums.

  • In 2004 New Mexico's premium rate index was $2.56 per $100 of payroll.
  • National premium rate indices ranged from a low $1.06 in North Dakota to a high of $6.08 in California.

To control compensation expenses in New Mexico:

  • Worker incentives to file frivolous claims are cut back.
  • Legal fees are capped and medical fees are contained.
  • Reliance on lawyers and litigation is limited.