How Nevada Surgeons Can Prepare for Possible Malpractice Cap Increase

If you are a surgeon in private practice in Nevada, you are keenly aware of the Nevada Justice Association’s repeated efforts to pass Bill AB404, which would increase the non-economic damage caps in malpractice lawsuits from $350,000 to $2.5 million. Even though this association of trial lawyers had previously proposed a bill eliminating the cap altogether, their compromise – if AB404 is passed – is still expected to be detrimental to Nevada’s private practice surgeons, as well as further limit the accessibility of patient care within the state.

Nevada already faces a severe shortage of physicians, and the cap increase would be yet another hurdle to attracting new surgeons – and keeping established practices from leaving the state. A 2022 report cited in the Nevada Independent found that Nevada has the sixth lowest ratio of physicians to residents — 218.5 per 100, 000 residents.

Will you stay to practice in Nevada practice or leave if AB404 is passed? Regardless of your decision, now is the time to ensure that your malpractice insurance coverage will be robust enough to protect you against personal and practice-related financial loss if you are sued. MEDPLI can help as your trusted malpractice insurance broker. Our experienced insurance brokers specialize in partnering with private practice surgeons to find the best coverage at the lowest rate from leading “A” rated carriers.

Unlike the previously proposed bill, AB404 does not mandate Nevada surgeons to have malpractice coverage of at least $1 million and up to $3 million. However, you want to be sure to have a policy in place with claim limits that are more than adequate in relation to your risk of being sued – based on specialty, geographic location, practice size, and any previous claims, for example. And of course, you want the best premium rate possible from a highly rated carrier. So where do you start? Call MEDPLI.

As the only independent medical malpractice broker you’ll need, a MEDPLI insurance broker will partner with you as you take proactive steps now to protect your practice if AB404 passes:

• First, review your practice business plan in light of what, if any, changes you would make to compensate for the proposed cap increase and possible increase in malpractice insurance policy premiums.
• Next, consult with a MEDPLI insurance broker, who will review your current policy to determine if you are adequately covered if there’s a cap increase, or if you will need to increase coverage or change carriers.
• Completely fill out and submit just one quote application to MEDPLI. Your insurance broker will be your single point of contact for obtaining multiple quotes from “A” rated carriers known for their financial stability and success in providing strong legal defense for policyholders in malpractice cases. Working with MEDPLI saves you time and effort by getting quotes only from leading carriers that serve Nevada surgeons and will insure your specific surgical specialty and practice type.

Review your best policy, carrier, and rate options with your MEDPLI insurance broker, and secure the robust coverage you need.

Even if you decide to relocate your practice from Nevada to another state, you may still be liable for malpractice claims made by your former patients. Note that the passage of AB404 would also extend the statute of limitations for filing a malpractice civil lawsuit from three years to four years from the date the patient injury occurred. Also, Nevada patients would now have two years instead of one to file a claim after the date the injury was discovered.

Extended Reporting Period (ERP) coverage, commonly known as medical malpractice “tail” insurance, provided by “A” rated carriers through MEDPLI is a standalone policy that would protect you from any future malpractice claims made by patients you treated during the time of your former Nevada practice.

Consult with your MEDPLI insurance broker to determine if you need a tail policy, and if so, they will obtain all viable standalone tail insurance options for you. Also, medical malpractice laws and statues can vary from state to state. If you need tail insurance, your MEDPLI insurance broker will ensure that you get the right type of policy and coverage for the new location of your practice.

Whether AB404 will eventually become law is still uncertain, but you can reach out to a MEDPLI insurance broker now to be sure your Nevada medical practice is adequately protected regardless of the outcome. Call us at 800-969-1339 or send us an email.