Policy Briefing California Physicians Negotiate Historic Changes to MICRA Law BY B I L L B A R C E L LO N A , E X EC U T I V E V P, G OV E R N M E N T A F FA I R S , A M E R I C A’ S P H YS I C I A N G R O U P S
America’s Physician Groups is a member of Californians Allied for Patient Protection (CAPP),1 the statewide coalition to protect access to healthcare through the Medical Injury Compensation Reform Act (MICRA). This is a California law that has stood for over 50 years, reducing the cost of malpractice coverage and helping keep healthcare costs significantly lower than other jurisdictions. MICRA ensures that injured patients receive compensation while preserving access to healthcare by keeping providers in practice and hospitals and clinics open. Without MICRA’s protections, many of California’s most underserved populations would face reduced access to these much-needed services. An initiative called the “Fairness for Injured Patients Act” (FIPA) qualified for the ballot this November and, if passed, would have effectively eliminated these protections. Funded by a wealthy out-of-state trial lawyer, the proposition was an end-run around MICRA. California ballot measures usually involve amendment of the state’s constitution and contain language that, once adopted, cannot be easily changed through subsequent legislation. California wisely passed rules some years ago that enable the Legislature to pass alternative language through its regular process of lawmaking. In a surprise move, the parties to this MICRA fight reached agreement on a compromise and will avail themselves of this alternative legislative pathway.
A MODERNIZED MICRA The outline for the compromise solution under Assembly Bill 35 was released publicly on April 27. As this article goes to press, this compromise includes the following key provisions: 1. For a non-death case, the non-economic damage cap increases from $250,000 to $350,000 on Jan. 1, 2023, and continues to increase to $750,000 over 10 years. 2. For a wrongful death case, the non-economic damage cap increases from $250,000 to $500,000 on Jan. 1, 2023, and continues to increase to $1 million over 10 years. 3. Starting on Jan. 1, 2034, a cost-of-living adjustment attaches— thereby adjusting these caps annually. 4. Current law limits a plaintiff’s recovery to $250,000, regardless of the number of defendants. This proposal creates three separate categories of defendants for a total of three possible caps: • One cap for healthcare providers (regardless of the number of providers or causes of action) • One cap for healthcare institutions (regardless of the number of institutions or causes of action). 14 l JOURNAL OF AMERICA’S PHYSICIAN GROUPS
Spring 2022
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In a surprise move, the parties to this MICRA fight reached agreement on a compromise.”
