New California Law Increases Limits for Medical Malpractice Injuries
In 1975, the California legislature passed the Medical Injury Compensation Reform Act, MICRA, with the stated intention of lowering medical malpractice liability insurance premiums due to ‘runaway jury verdicts’ being won against doctors and other medical providers.
This effort to reduce tort liability was to cap certain damages claims such as non-economic damages, such as pain and suffering at $250,000. In addition, MICRA set limits on the attorney fees plaintiffs’ attorneys could earn, between 15% to 40%.
Until recently, there have been few changes to the MICRA since its enactment.
Taking effect on January 1, 2023, the new MICRA modifications kick in due to the passing of AB 35. Some changes will take effect annually, with the cap on uneconomic damages incurring stairstep changes over time and, also, depending on the type of medical malpractice case.
Wrongful Death Case
For a wrongful death case, the cap will increase on January 1, 2023 from $250,000 to $500,000. On each January 1st thereafter, the cap will increase by $50,000 each year for 10 years until 2033. Once the cap reaches $1,000,000, the cap will be increase by 2% per year, starting on January 1, 2034.
Non-Wrongful Death Case
For a non-wrongful death case, the cap will increase on January 1, 2023 from $250,000 to $350,000. On each January 1st thereafter, the cap will increase by $40,000 each year for 10 years until 2033. Once the cap reaches $750,000, the cap will be increase by 2% per year, starting on January 1, 2034.
New Defendant Categories
The new law has also created three categories of defendants for medical malpractice claims:
- Health Care Providers
- Health Care Institutions
- Unaffiliated Health Care Providers or Institutions
Health Care Providers are persons licensed or certified under Division 2 of the Business and Professions Code:
- County Medical Facilities
- Outpatient Clinics
- Health Dispensaries
- Health Facilities
- The Legal Representatives of a Health Care Provider and their employer, professional corporation, partnership or other corporate form.
Health Care Institutions are facilities, places or buildings that are organized, maintained and operated for the prevention, diagnosis, care and treatment of illness where persons are admitted for at least a 24-hour stay.
Unaffiliated Health Care Providers or Institutions are those who are not employed by, performed under a contract with, an owner of, or in a joint venture with another specified entity, health care institution, health care provider, organized medical group, or that is otherwise not in the same health system with that health care provider or entity, or those not covered under the definition of affiliated under Corporations Code section 150.
As such, there may be three (3) separate limits of liability applicable to a Plaintiff’s claim. However, the Plaintiff may only recover from each of the three (3) categories once as part of a particular case, regardless of the number of defendants within each category.
Periodic Payments
The California Code of Civil Procedure section 667.7 requires that the superior court order judgments in medical malpractice suits to be paid in periodic payments when the judgment is for $50,000 or more, when requested by one of the parties. The new law increases this to $250,000 or more.
Plaintiffs’ Attorneys’ Fees & Statements by Medical Professionals
If a settlement is reached prior to the filing of a civil complaint or demand for arbitration is filed, the Plaintiffs’ attorneys’ contingency fees are increased to 25%. After that, the attorneys’ fees increase to 33%. In addition, all expressions of sympathy, regret or benevolence, including statements of fault, are inadmissible. This includes statements made in relation to pain, suffering, an adverse safety event or unexpected medical outcome.
If you have a legal issue, contact Dias Law Firm, Inc. for a consultation with our knowledgeable attorneys.
