"Medical Philanthropy Act"; provides physicians who provide uncompensated care with $250,000 cap on noneconomic damages in actions alleging medical malpractice.

2026-2027 Regular Session Introduced by Dawn Fantasia and 1 co-sponsor

New Jersey doctors who provide at least 10% uncompensated care in a year get a $250,000 cap on noneconomic damages in related malpractice cases.

Introduced, Referred to Assembly Judiciary Committee

Purpose and Intent

The bill, titled the “Medical Philanthropy Act,” aims to incentivize physicians to provide uncompensated care to a portion of their patients.

In return for uncompensated care meeting a defined threshold, the bill establishes a cap on noneconomic damages in medical malpractice actions against qualifying physicians.

The overarching goal is to reduce malpractice risk and potentially lower malpractice insurance premiums for physicians who engage in charitable, uncompensated care.

Key Provisions

Eligibility for Noneconomic Damages Cap

A physician licensed in New Jersey who provides care or treatment to at least 10% of their patients in a calendar year without compensation qualifies for the cap.

For such physicians, noneconomic damages in medical malpractice actions are limited to $250,000.

The $250,000 cap applies to cases arising from care or treatment provided during the calendar year for which the physician qualifies.

Administration and Verification (Board Rules)

The New Jersey Board of Medical Examiners must adopt rules under the Administrative Procedure Act to implement:

Procedures for physicians to report, document, and certify the uncompensated care and the total number of patients treated in the year.
Verification that the uncompensated care represented more than 10% of the physician’s patients.
Notification to both the physician and the Department of Banking and Insurance that the physician qualifies for the cap.

Upon notification from the Board, physicians may inform their medical malpractice insurer that they are subject to the $250,000 noneconomic damages cap for that calendar year.

Implementation and Effective Date

The act takes effect on January 1 of the year following enactment.

Who Is Affected

Physicians licensed to practice in New Jersey who provide uncompensated care to at least 10% of their patients in a calendar year.

Medical malpractice insurers (claims and underwriting) who would apply the cap once physicians are notified of eligibility.

The Board of Medical Examiners and the Department of Banking and Insurance, which will administer reporting, verification, and notification processes.

Procedural and Timeline Notes

Introduces a reporting and verification regime to ensure accurate determination of eligibility.

The timeline for eligibility is tied to the calendar year in which the 10% uncompensated care threshold is met; the cap then applies to actions arising from care during that same year.

Effective date is the January 1 following enactment.

Additional Considerations

The bill does not specify any direct monetary compensation to physicians beyond the cap on noneconomic damages; it implies insurers may experience changes in premium structure due to reduced liability exposure for qualifying physicians.

It focuses solely on noneconomic damages (pain and suffering, etc.), leaving economic damages (e.g., medical expenses) potentially unaffected by the cap.

Bill