In early June, Colorado Governor Jared Polis signed House Bill 1472 into law, raising the monetary limits on non-economic damages and wrongful death damages in both medical malpractice lawsuits and civil suits in general. The new law goes into effect on January 1, 2025.

However, if you are a Colorado doctor in private practice, now is the time to prepare for the inevitable cap increases by reviewing your medical malpractice insurance coverage to ensure against heavy financial loss if sued in the future. MEDPLI can help with a free consultation and quotes.

Our independent brokers have many years of experience working with Colorado doctors and always stay current with the state’s changing medical malpractice tort reforms. Talk with a MEDPLI broker who will help you secure the right medical malpractice coverage with an A-rated carrier at competitive rates for your specialty. Get a quote today.

In general, House Bill 1472 increases the non-economic damage cap for civil actions filed on or after January 1, 2025, from $250,000 to $1.5 million, and caps wrongful death damages at $2.125 million. The caps will be adjusted for inflation every two years starting January 1, 2028. 

The reforms applicable to medical malpractice lawsuits specifically are:

• As of January 1, 2025, increases to the non-economic damages cap incrementally from $300,000 to $875,000 over five years. Afterward, the cap will be adjusted biennially for inflation.
• Increases the wrongful death damage cap to $1.575 million over five years. Afterward, the cap will be adjusted biennially for inflation.

Colorado’s bipartisan legislation is reported to be a compromise between a faction of Colorado trial lawyers who proposed a complete elimination of liability damage caps and their opponents in the state’s insurance market lobbying for only modest increases. You can find more information on House Bill 1472 at Gov. Polis Signs Medical Liability Bill into Law.

Historically, Colorado has been a favorable state for physicians in terms of job opportunities and a competitive medical malpractice insurance marketplace. However, higher damage caps plus incremental increases could potentially contribute to a rise in medical malpractice coverage costs, as well. Nevertheless, you’ll need robust coverage at a competitive rate when Colorado’s new damage cap laws go into effect. Here are proactive steps you can take now:

• Review your current medical malpractice policy.
  Will you need to increase your coverage? Change carriers? Seek a better rate? With a MEDPLI broker as your single point of contact with multiple carriers serving Colorado, you’ll save time and effort in comparing a wide range of policies, carriers, and rates.
• Seek coverage by an AM Best A-rated carrier.
  A-rated medical malpractice insurance carriers are proven to have a reputation for financial stability and strong representation for policyholders in lawsuits. MEDPLI brokers can provide multiple quotes from A-rated carriers serving Colorado physicians.

The total malpractice payout in Colorado was $48,180,000 as of 12/31/2023. (Source: National Practitioner Data Bank). MEDPLI brokers are experienced in securing robust coverage for physicians in high-risk specialties that are sued more often for medical malpractice, including OB/GYN, bariatric surgery, plastic surgery, orthopedics, neurosurgery, and general surgery.

Considering relocating to a state with more favorable tort reforms? MEDPLI also specializes in tail insurance from “A” rated carriers. Your MEDPLI broker can save you time and guesswork by providing a range of viable standalone options for Extended Reporting Period (ERP) coverage (“tail” insurance) based on your new practice location.

Time will tell how Colorado’s new law will affect the state’s healthcare landscape and malpractice insurance rates. Most importantly, will your current medical malpractice insurance coverage protect your practice in the future as Colorado damage caps increase? Find out now by contacting a MEDPLI broker for a free consultation and quote. Call us at 800-969-1339 or email info@medpli.com.