New Mexico Medical Malpractice Act: Key Liability Coverage Changes
In response to concerns about the viability of medical practices in the state, New Mexico Medical Malpractice Act (MMA) underwent significant changes designed to prevent a crisis in medical liability insurance. A last-minute fix to the MMA, signed by Governor Michelle Lujan Grisham, averted an impending insurance crisis that threatened to disrupt patients services.
As of January 2022, these changes were intended to address ambiguities that could have left independent physicians and medical practices without adequate coverage, potentially halting care across the state.
Why the New Mexico Medical Malpractice Act Was Revised
The overhaul of New Mexico’s Medical Malpractice Act was driven by the need to balance maintaining affordable medical liability insurance and ensuring compensation for patients injured by medical malpractice. The previous version of the law left many healthcare providers, particularly independent physicians, vulnerable to skyrocketing insurance premiums.
To address these issues, lawmakers redefined liability caps and sought a compromise between healthcare providers, hospitals, and trial lawyers. The changes aimed to stabilize the medical liability insurance market while offering patient protections, preventing a complete breakdown in coverage options.
Impact of the Ambiguous Language on Physicians and Hospitals
While the MMA overhaul was necessary to address liability concerns, the introduction of ambiguous language in the law had unintended consequences. Specifically, the definitions of certain terms left independent physicians and hospitals unsure of how to proceed, especially regarding their liability caps.
Independent physicians who provided services to hospitals or owned outpatient clinics found themselves facing significantly higher coverage requirements. With some insurers unwilling to offer policies that met the new $4 million cap, many practices were on the verge of closing. This ambiguity created an unstable environment for physicians, making it difficult to secure adequate coverage without the risk of financial ruin.
House Bill 11: The Fix That Saved Practices
House Bill 11 was the crucial legislation that addressed the ambiguities in the New Mexico Medical Malpractice Act and prevented an insurance crisis in the state. This bill clarified the definitions in the law, ensuring that independent physicians and medical practices could continue to operate without the threat of losing coverage or being forced to close.
The bill set new liability caps and defined clear guidelines for coverage, allowing physicians to avoid the financial instability that could have resulted from the initial MMA revisions. By maintaining access to malpractice insurance and providing clearer rules for coverage, House Bill 11 helped stabilize the healthcare landscape in New Mexico.
What Physicians Need to Know About New Liability Caps
House Bill 11 set new liability caps for medical malpractice insurance. Independent physicians now face a $750,000 cap, with annual adjustments. Hospital-owned facilities are subject to a $4 million cap, increasing to $6 million by 2027. Physician-owned outpatient facilities will operate under a $750,000 cap until 2024, after which it rises to $5 million. Physicians must stay updated on these caps to ensure their coverage complies with the new requirements.
Secure Your Practice with New Mexico Medical Malpractice Coverage
As New Mexico’s medical malpractice laws evolve, it’s essential for physicians to secure the right coverage to meet the new liability caps and definitions. Ensuring your practice is protected with compliant malpractice insurance can save you from costly risks down the road. Stay ahead of regulatory changes and safeguard your practice by working with an experienced broker to find the best policy. Get a quote today for a personalized New Mexico malpractice insurance quote and a consultation to ensure you have the coverage your practice needs.
