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New Mexico Proposes Caps on Medical Malpractice Punitive Damages
Lawmakers aim to retain doctors in the state amid concerns over high payouts.
Jan. 29, 2026 at 8:39pm
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New Mexico lawmakers are considering a bill that would impose new caps on punitive damages in medical malpractice lawsuits. The proposed limits are $900,000 for independent providers and $6 million for hospitals. Supporters say the changes are needed to address concerns that high payouts are driving doctors out of the state, while critics argue the bill favors large healthcare corporations over patients.
Why it matters
New Mexico has struggled to retain doctors, with healthcare leaders citing the state's medical malpractice laws as a key factor. The proposed legislation aims to strike a balance between accountability and liability, but faces pushback from some attorneys who argue it unfairly protects corporate interests.
The details
House Bill 99 would establish new caps on punitive damages in medical malpractice cases. The limits would be $900,000 for independent providers and $6 million for hospitals. Supporters, including Rep. Christine Chandler, say the changes are necessary to update New Mexico's laws and make the state more attractive for doctors. However, some attorneys, like Kathy Love, argue the bill favors large healthcare corporations over patients and workers.
- House Bill 99 is scheduled for its first committee review on Friday morning.
The players
Rep. Christine Chandler
A Democratic state representative in New Mexico who is supporting the proposed legislation.
Sen. Nicole Tobiassen
A Republican state senator in New Mexico who is also supporting the proposed caps on punitive damages.
Kathy Love
A medical malpractice attorney who opposes the bill, arguing it favors large healthcare corporations.
What they’re saying
“This bill sends the message that we are taking it seriously, and we are going to improve the system so that doctors can practice here without the fear of unnecessary, unjustified litigation.”
— Rep. Christine Chandler, State Representative
“Trial attorneys are using punitive damages as the major negotiating tool to scare the ever-living-kijibis out of doctors so that they settle on the med mal side for large sums of money.”
— Sen. Nicole Tobiassen, State Senator
“I believe that New Mexico values do not agree that healthcare corporations who make billions of dollars should be limited in their accountability to patients and to the people who work there.”
— Kathy Love, Medical Malpractice Attorney
What’s next
House Bill 99 is scheduled for its first committee review on Friday morning, which will determine if the bipartisan proposal will advance.
The takeaway
The proposed changes to New Mexico's medical malpractice laws highlight the ongoing tension between ensuring accountability for healthcare providers and retaining doctors in the state. The outcome of this legislation could have significant implications for patients, doctors, and the broader healthcare landscape in New Mexico.
