California Medical Malpractice Limits Provides Lesson For New York
A recent article in the New York Times suggests New York lawmakers look at California medical malpractice laws as a “cautionary tale” concerning the real impact medical malpractice limits have on reducing insurance premiums and passing those savings on to physicians and hospitals.
California’s MICRA – passed in 1975 - caps “non-economic” damages in cases of medical mistakes to $250,000. MICRA has served as a model for similar proposals around the country. However, serious concerns have been raised concerning who really benefits from limits – doctors or insurance companies – and who is harmed.
Much evidence suggests that it is the victims of medical negligence who suffer the most as the result of the cap, often unable to find lawyers to represent them. Caps may make costly medical malpractice cases economically unfeasible for many firms to pursue.
Further, although enacting caps may have a limited impact on reducing insurance premiums, the savings are minimal. As stated by Kenneth E. Thorpe, professor and author of study concerning the impact of caps on insurance premiums, “Without question, it’s not a game-changer.”
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