California’s Medical Injury Compensation Reform Act (MICRA) was
established to allow for the recovery of all economic damages or
out-of-pocket costs for medical expenses. In past years, there
has been a push to amend this act. Most recently trial lawyers
collected signatures for an anti-MICRA ballot measure which would
allow for significant increases in the dollar amounts sought by
plaintiffs in suits against medical providers and healthcare
professionals. This, in turn, would increase medical liability
rates for the same providers. CSAC has opposed previous
legislation, due to the potential fiscal impact to county
hospitals and clinics because it would likely increase
malpractice premiums and potentially cause additional strain on
the health care workforce.
Stakeholders led by the direction of Californians Allied for
Patient Protection (CAPP) coalition have reached an agreement on
proposed legislation to modify MICRA. The agreement:
Extends the long-term predictability and affordability of
state liability protections for those providing medical care in
California, and
Provides a fair and reasonable increase to limits on
non-economic damages (there is no cap on economic damages such as
medical costs or lost salaries) for medical
malpractice starting January 1, 2023 – with gradual
increases thereafter.
May 12, 2022
The agreement strikes a balance that allows for continued medical
liability protections while incrementally increasing limits on
non-economic damages. The proposed agreement reflects an increase
over 10 years from a $250,000 limit on non-economic damages to
$750,000 for non-death cases and $1,000,000 for wrongful death
cases. The initial limit increase will occur on January 1, 2023,
to $350,000 for non-death cases and $500,000 for wrongful death
cases.
The deadline to withdraw the current MICRA ballot measure, which
has gathered enough signatures, is June 30. Stakeholders are
currently working to finalize legislation prior to the withdrawal
deadline.
