In July we had written about MICRA coming under fire, with trial lawyers pushing to raise the cap on non-economic damages to as high as $1 million. A recent appellate decision reduced a $6 million jury award to the state’s limit of $250,000.
Many would argue that this decision is a sigh of relief for California doctors. It has been argued that the cap on non economic damages allows for greater patient access to doctors and thus helps to curb the cost of health care.
In its opinion, the California State Court of Appeals said the cap was enacted on valid rationale and does not compromise citizens’ rights.
“Our Supreme Court … has already determined the constitutionality of [the Medical Injury Compensation Reform Act], in which it concluded the statute does not violate equal protection rights because the Legislature rationally could conclude a medical malpractice crisis existed that required legislative intervention to reduce medical malpractice insurance costs, and that [MICRA] is rationally related to the cost-reduction goal,” the court said.
Alicia Wagnon, legal counsel for the California Medical Association said she thinks the case ties in nicely with the importance of MICRA and its ability to stabilize medical malpractice insurance costs. This allows the state of California to retain doctors and provide the necessary care to the citizens of California.
