This bill amends Section 41-5-5 of the New Mexico Medical Malpractice Act to expand the types of medical malpractice liability insurance that health care providers can obtain to qualify under the Act. It specifies that health care providers must establish financial responsibility by either maintaining a certain level of malpractice liability insurance or by depositing a specified amount of cash with the superintendent. The bill introduces new provisions allowing health care providers to use either claims-made or occurrence-based malpractice insurance, with the requirement that those using claims-made insurance must obtain tail coverage if their policy is terminated.

Additionally, the bill clarifies the definitions of claims-made malpractice insurance, occurrence-based malpractice insurance, and tail coverage. It also modifies the financial responsibility requirements for independent outpatient health care facilities, increasing the minimum insurance coverage and cash deposit amounts. The bill includes a provision that hospitals and hospital-controlled outpatient health care facilities will not participate in the medical review process starting July 1, 2021, but will gain certain benefits of the Medical Malpractice Act by January 1, 2027, excluding participation in the fund.

Statutes affected:
introduced version: 41-5-5