Rising liability insurance costs are leading doctors to urge states to impose more limits on damages patients can collect in malpractice cases. Over 40% of medical liability premiums increased from 2024 to 2025, marking the seventh consecutive year that premiums rose, despite the decrease in physicians suing. This increase is seen in states like New York and Pennsylvania, where more than 90% of liability premiums rose last year. Higher liability premiums typically fall on doctors in specialties like OB-GYN and general surgeons, who are sued more often. The American Medical Association (AMA) has warned that without more relief, physicians will relocate from high-cost states, leaving patients with fewer care options. New Mexico recently overhauled its malpractice laws, introducing a new tiered system that caps punitive damages at different levels for independent physicians and clinics, locally owned hospitals and corporate health systems.