New Mexico doctors are facing a crisis as insurance premiums continue to rise, despite a decline in medical malpractice claims. According to the American Medical Association (AMA), the percentage of physicians sued for malpractice in 2024 fell from 2.3% to 1.8%, yet medical malpractice insurance rates have more than tripled nationally.
Declining Claims, Rising Premiums
The AMA’s 2024-2025 reports highlight a trend that the insurance lobby would rather ignore. Claim frequency against physicians has fallen significantly over the last decade. In 2024, less than a third of physicians (28.7%) reported having been sued during their careers, which is a notable drop from 34% in 2016.
Furthermore, the majority of these cases, nearly 65%, are dropped, dismissed, or settled without any finding of fault. The ‘litigation explosion’ is a myth. New Mexico’s legal system is not being overrun; if anything, the ‘toll’ the AMA speaks of is the burden of an administrative and insurance system that refuses to acknowledge these declining risks.
Despite fewer claims, the AMA reports that medical liability premiums have increased nationwide for the seventh consecutive year. This is the most prolonged upward trend since the early 2000s. In 2025 alone, nearly 40% of all premiums rose year-over-year.
Impact on New Mexico’s Medical Community
In New Mexico, we see this play out in our rural clinics and specialty practices. When the risk (lawsuits) goes down and the price (premiums) goes up, the difference doesn’t vanish into thin air. It goes into the pockets of insurance company shareholders.
The industry uses a term called ‘social inflation’ to justify these hikes—blaming everything from COVID-19 to ‘shifts in jury perspectives.’ They claim they are ‘scared’ of large verdicts, yet they fail to mention that the vast majority of cases never reach a jury, and total payout amounts across the industry have remained relatively stable when adjusted for actual inflation.
What we are witnessing is a ‘hard market’ by design. By jacking up rates while lawsuits are down, insurance companies are padding their reserves and ensuring that even if they face a rare large verdict, their bottom line remains untouched.
As a trial lawyer, my job is to fight for justice for patients who have been catastrophically injured by medical negligence. I believe in accountability. But I also believe in a healthcare system that works for doctors.
It is time to stop blaming the courtroom for the greed of the boardroom. If we want to lower healthcare costs and keep doctors in New Mexico, we shouldn’t be looking at tort reform; we should be looking at insurance reform.
Original reporting: Las Cruces Sun News (HLL/CB) — read the source article.
