SENATE MEMORIAL 11

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Dede Feldman

A MEMORIAL

REQUESTING THAT THE DEPARTMENT OF HEALTH CONVENE A TASK FORCE ON HEALTH CARE PROVIDER GENERAL LIABILITY INSURANCE TO STUDY AND MAKE RECOMMENDATIONS TO THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE ON THE BEST MEANS OF OFFERING FINANCIAL SUPPORT TO HEALTH CARE PROVIDERS TO OFFSET GENERAL LIABILITY INSURANCE PREMIUMS.

     WHEREAS, rising general liability insurance premium rates for health care providers continue to present a crisis in health care delivery for all types of providers; and

     WHEREAS, the negative impact of high-cost general liability insurance premiums is spread among all health care providers, public and private; urban and rural; those practicing in institutions and those with independent practices; and

     WHEREAS, the national governors association reports that the issue of decreasingly affordable general liability insurance premiums threatens to affect the supply of affordable, accessible health care, especially within high-risk medical specialties and in medically underserved communities; and

     WHEREAS, the New Mexico health policy commission has designated thirty-two of New Mexico's thirty-three counties as health professional shortage areas; and

     WHEREAS, New Mexico cannot afford to allow rising general liability insurance premiums to cause further attrition of health care providers in the state; and

     WHEREAS, states such as Nevada and West Virginia have established state-based medical malpractice insurance funds in order to fill gaps in the medical malpractice liability insurance market; and

     WHEREAS, the state of New Jersey has taken measures to address the problem of rising medical malpractice liability insurance premiums by establishing programs, funded by means of medical, dental and legal licensing fees and unemployment compensation surcharges assessed upon employers, to provide direct financial relief towards the payment of medical malpractice liability insurance premiums to certain health care providers; and

     WHEREAS, states such as Arizona, Hawaii, Illinois, Maine, Nevada, New York, North Carolina, Texas and Washington have also established subsidies, paid for through annual surcharges assessed against providers, that pay all or a portion of providers' medical malpractice insurance premiums; and

     WHEREAS, the state of Oregon recently established a professional liability fund to pay provider malpractice damages;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the department of health be requested to convene a task force on health care provider general liability insurance, in conjunction with the New Mexico medical society, the insurance division of the public regulation commission, the attorney general, the New Mexico health policy commission and the New Mexico nurses association, to study the most fitting levels and means through which the state might best provide financial support to health care providers facing high general liability insurance premiums, including through subsidies, tax credits or other mechanisms; and

     BE IT FURTHER RESOLVED that the task force study means of targeting financial support to health care providers facing high general liability insurance premiums by specialty group, geographic location or other characteristic; and

     BE IT FURTHER RESOLVED that the task force report its findings to the legislative health and human services committee by September 1, 2008; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretary of health, the attorney general, the superintendent of insurance, the agency director of the New Mexico health policy commission, the president of the New Mexico medical society and the executive director of the New Mexico nurses association.

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