Medical professionals in New Mexico are not required to obtain malpractice insurance. However, hospitals and other healthcare facilities may mandate that physicians carry medical malpractice insurance while working in their facility, and minimum coverage is necessary to enroll as a Patient Compensation Fund (PCF) provider. The average physician requirement for coverage is $200,000 per claim, $600,000 per year in 2021.
Effective January 1, 2022, the required limits of professional liability for PCF-enrolled providers increases from $200,000 to $250,000, and the damage cap for claims against PCF-enrolled providers who are not hospital/outpatient facility employees increases to $750,000, which will be adjusted annually based on the consumer price index.
Malpractice insurance policies for New Mexico doctors will be issued exclusively on a calendar year basis going forward, with policy effective dates of January 1 each year. The PCF has stopped accepting enrollments of policies or policy changes that extend into 2022 and has mandated that, effective January 1, 2022, policies must be issued with the higher underlying limits.
Insurance carriers in New Mexico will be cancelling medical malpractice policies effective January 1, 2022 and physicians will receive a pro-rata refund of premium and surcharge for their shortened 2021 policy. Policies will then renew effective January 1, 2022 with $250,000 limits.
Good doctors need to protect against the possibility of a medical malpractice lawsuit, and working with an independent broker to secure comprehensive medical malpractice insurance is fundamental to reducing risk in your practice.