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Out of Their Minds: December

From December 2004

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Do Malpractice Caps Stifle Skyrocketing Insurance Rates?  

By Rich Ehisen 

Almost 30 years ago, California enacted the Medical Injury Compensation Reform Act (MICRA), which placed a $250,000 cap on jury awards for pain and suffering in medical malpractice lawsuits. Twenty-four states have since adopted their own caps, with many others moving to take similar action in 2004. President Bush has voiced his support for a federal $250,000 cap. This trend has undoubtedly added to the growing chasm between medical practitioners, who say such caps benefit both doctors and patients by keeping malpractice insurance rates affordable, and trial attorneys, who claim they undermine the jury system and often prohibit medical malpractice victims from being justly compensated for their damages. The California Legislature has rejected numerous bills over the years that would have raised the current cap, with another  attempt expected to take place in 2005. This month, Prosperdiscusses the pros and cons of medical malpractice caps with two of the Sacramento Region’s most notable experts in the field – California Medical Association CEO Jack Lewin, M.D., and McGeorge School of Law Adjunct Professor Sarah Nichols.

Jack Lewin, M.D.
Prosper: Should we retain California’s MICRA cap on pain and suffering damages in medical malpractice cases?
Lewin: Absolutely. The cap allows patients  to be treated fairly, without encouraging  frivolous lawsuits that often occur in states without a cap. When somebody has been harmed by a true malpractice event, we believe there should be fair and just compensation. But, we also believe that when  good medical care has been rendered, but  the outcome is nonetheless bad, doctors don’t deserve to become a deep pocket for a jackpot-justice system related to  adverse outcomes. That is what the trial  bar has turned malpractice into. When  something goes wrong, even if the doctor  has done nothing incorrect, it is often still economically rewarding for both the lawyer  and the patient to pursue a lawsuit. But, with the MICRA cap, if a case is not legitimate, there is not a lot of incentive to  move forward.

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