HB-188 and SB-213 need your attention NOW. Call your senator and representative and urge them to PASS this crucial legislation.

What happens if they don't pass???
1. Based on the Div. of Insurance memorandum, being held momentarily in-check by a Temporary Restraining Order (TRO), failure to allow licensure of medical corporations would prevent them from qualifying under the Medical Malpractice Act. Corporations not protected under the Malpractice Act would be subject to uncapped damages.

2. Premiums would increase 21-35% based on current data and projections available. What does this mean for you? A large Ob/Gyn practice now paying close to $900k per year would pay $1.1M per year for comparable $200k/$600k policy and $1.2M per year for a $1M/3M policy. A large orthopedic group paying close to $815K per year would end up paying just under $1M and close to $1.1M for respective policies. Single-physician family practices would have premiums increase by $3-5K for comparable policies.

3. Additional considerations include the size of the policies to cover corporations. The value of account -receivables and equipment (think MRI and CT scanners) in some practices far exceed a $200k/600K policy or even a $1M/3M policy. If these corporations no longer qualify under the Malpractice Act, policy values would need to be increased or extra coverage purchased to adequately protect the corporation assets.

4. Inferior claims-made policies (that require "tail" coverage) would replace occurrence policies which are required under the Malpractice Act. Occurrence policies benefit physicians and patients. Claims made policies benefits insurance companies.

HB-188 and SB-213 would accomplish 3 win-win goals:
1. Address all concerns raised by Div. of Insurance late last fall
2. Discontinue pending litigation
3. Continue current coverage of corporations under the Malpractice Act as they have been protected so successfully for the last 34 years.

Please call, fax, and email your reps in Santa Fe. This is it.

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