Santa Fe, NM – A sweeping overhaul of New Mexico’s medical malpractice laws is headed to Governor Michelle Lujan Grisham’s desk after the Senate on Tuesday night passed House Bill 99 by a vote of 40-2. The bill, which places caps on punitive damages in medical malpractice cases, passed after a contentious day that saw Senate Judiciary Committee amendments stripped from the legislation in a 25-17 vote.
HB 99 aims to address a perceived crisis in the state’s healthcare system, with proponents arguing This proves a critical step toward reversing a severe doctor shortage. The legislation establishes tiered caps on punitive damages based on the size of the medical practice or facility: approximately $1 million for independent providers and clinics, $6 million for locally owned hospitals and $15 million for larger hospital systems. These caps will adjust annually for inflation. The bill also raises the evidentiary standard for punitive damages to “clear and convincing” evidence and requires judicial review before such claims can proceed to trial, according to a press release from the Governor’s office.
The path to passage was not without friction. Earlier Tuesday, the Senate Judiciary Committee added amendments that Rep. Christine Chandler, the bill’s sponsor, argued would have undermined its effectiveness in reducing insurance premium costs for providers. Senator Crystal Brantley, R-Elephant Butte, characterized the committee’s actions as a “hijacking” by trial lawyers prioritizing their own financial interests over the needs of patients and access to healthcare. “A modest group of plaintiffs’ attorneys are now holding over 2 million New Mexicans hostage,” Brantley stated on the Senate floor.
Senator Katy Duhigg, D-Albuquerque, a lawyer on the Senate Judiciary Committee, defended the amendments, stating they were necessary to address legal complexities within the bill and ensure clarity for judges and juries. “These are complicated issues… and our judges and juries need as much clarity as possible,” she said. Yet, she also expressed skepticism that the bill would achieve its stated goal of lowering insurance premiums or improving access to care, citing historical precedent. “We are representing to the public that malpractice insurance premiums will go down, when that is not what history shows, and that access to care will go up, when that is not what history shows,” Duhigg argued during committee debate.
The House passed HB 99 on February 14th with a 66-3 vote, following weeks of negotiations involving lawmakers, the Governor’s Office, attorneys, hospital representatives, and physicians. Governor Lujan Grisham had previously stated she would call a special session if the Legislature failed to pass a substantial overhaul to the malpractice law. The Governor’s office has emphasized the bill’s importance in balancing patient rights with the need to attract and retain physicians in New Mexico.
Several lawmakers disclosed potential conflicts of interest due to their legal professions. Senators Peter Wirth, Joseph Cervantes, Moe Maestas, and Duhigg all acknowledged their involvement in medical malpractice law or membership in the New Mexico Trial Lawyers Association, which has opposed changes to the existing law. Despite these disclosures, they all indicated they would vote on the bill without direct financial benefit, noting that any impact would be on cases already filed.
The Senate’s vote to strip the Judiciary Committee’s amendments was largely along party lines, with Senators Linda López, D-Albuquerque, and Shannon Pinto, D-Tohatchi, joining all Republican senators in opposing the bill. The bill now awaits Governor Lujan Grisham’s signature.
