On April 28, a major change occurred in California’s midterm elections in November as the state’s legislators, the state’s doctors’ lobby and several advocacy organizations announced an agreement to keep a proposed measure to increase medical malpractice awards from the standard $250,000 limit that was implemented nearly 50 years ago in 1975.
The California Medical Association has come out in full agreement with the deal, replacing the ballot measure known as the “Fairness for Injured Patients Act” that would have increased the compensation cap for non-economic damages to an estimated $1.2 million.
The legislative agreement now takes a more staged approach to increase medical malpractice non-economic damages. The agreement states that beginning on Jan. 1, 2023, medical malpractice cases that do not include a patient’s death will now have a new limit of $350,000. That amount is due to continually increase over the following decade to $750,000 and an annual two percent inflation adjustment from 2034 on.
For medical malpractice cases that do involve death, there will be an automatic increased limit to $500,000 beginning on Jan. 1, 2023. That limit will increase to $1 million over the next 10 years, and then begin with a two percent annual inflation increase after.
Current California laws implement a $250,000 cap for non-economic damages for medical malpractice cases while there is no cap or limit in recovering money for projected loss of income and medical bills.
The California Medical Association has publicly stated that they are working with California Governor Gavin Newsom’s team and legislative members to turn the agreement into law as soon as possible. Both sides have agreed to give Newsom until June 30 to get the bill signed and begin a new chapter in medical malpractice suits in California.
The sudden agreement has come as a surprise to many on both sides of the issue, as it has been a hot topic in the state capital of Sacramento for two decades. Legal, medical and political insiders are also left thinking if the new structure of the new agreement will serve as a prototype to solve other longtime conflicts amongst the health and law industries.
If for some reason the bill is not signed into law by the end of June the Golden State will find itself back to square one, like 1975 all over again.
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