The Pool determines appropriate rates through a review of the average rates charged by major New Mexico health insurers for individual health coverage.

This average rate is called the "Standard Risk Rate" and the Pool's actuary updates this rate twice a year in order to reflect changes in the market, often referred to as "trend." As a result, the Pool's rates will increase when market rates go up.

New Mexico law also stipulates that the Pool's rates must be set at a certain percentage level above this Standard Rate. This difference is referred to as the "multiplier."