Dividend Payments Targeted In New Mexico Insurance Case

Jul 14, 2017

ALBUQUERQUE, N.M. (AP) — New Mexico Auditor Tim Keller is asking state regulators to prevent health insurance companies from paying out dividends to shareholders or other investors pending an ongoing audit related to premium taxes.

Credit Tim Keller, New Mexico Auditor

The request announced by Keller's office on Friday is the latest development in a case centered on whether insurance companies are paying what's owed to the state when it comes to taxes on premiums and other surcharges.

Earlier this week, New Mexico Attorney General Hector Balderas jumped into the fray with a lawsuit alleging that one of the state's largest health care providers underpaid its taxes by tens of millions of dollars over a 15-year period.

Officials with the Presbyterian health network dispute the allegations, saying they have been audited numerous times and have been working with state regulators to determine their tax liability.