New Mexico Medical Malpractice Insurance

October, 2002 update

As you probably know, last December St. Paul withdrew from the medical malpractice insurance business. When this occurred, CRNAs who obtained liability insurance through AANA Insurance Services were left with TIG as the only option for malpractice coverage. The AANA has now acquired another insurance carrier, CNA, so that all CRNAs still have a choice in who provides their liability insurance. CNA is now approved to write policies in New Mexico. An application can be obtained from the AANA website at: www.aana.com/members/insurance/cna_default.asp

You may also want to read the letter to AANA members from TIG at www.aana.com/members/insurance/tigltr053102.asp

If you have already received an application from TIG to either renew your existing policy or obtain new coverage, you will notice how comprehensive the application form is. Particularly if you work in an office setting, you now must provide more information about the facility in which you practice and the surgeon/staff with whom you work.

You will also notice in the TIG application information relating to a Patient Compensation Fund (PCF). Participating in the fund allows your liability to be capped at 200,000/600,000; as opposed to the 1million/3million liability usually required.

Currently, CRNAs are the only advanced practice nurses listed as eligible providers in the New Mexico fund. Six other states also have PCF, and in all instances an additional surcharge payment is required to join the fund. However, only New Mexico has supervision language attached to the surcharge. To join the fund, if you are supervised by an anesthesiologist, the surcharge is $2,987.00. If you are not supervised by an anesthesiologist, the surcharge is $9,946.00. This surcharge is in addition to your base premium. The two insurance companies in the state who administer the fund will not accept a CRNA unless they are employed by an anesthesiologist or an anesthesiologist group who also participates in the fund.

When NMANA became aware that TIG was mandating CRNA participation in the fund (in all states with a PCF) in order to write policies for CRNAs, we worked with AANA Insurance Services and TIG to eliminate this requirement for CRNAs in New Mexico. Obviously this surcharge is very problematic and cost prohibitive for CRNA practicing in New Mexico. The NMANA is continuing to work with TIG and the state insurance commission to resolve this matter. At this time, neither TIG nor CNA is requiring CRNAs in New Mexico to participate in the fund in order to obtain liability coverage.

NMANA is exploring all possible options to resolve this matter. We will provide updates on this web site as new information becomes available.