MICRA reform shocker! Back room deal??

In a shocking and unexpected turn of events, it was announced on April 27, 2022 that the California Medical Association had made a deal with several California legislators, creating proposed legislation which would significantly increase medical malpractice award payouts over the next 10 years and completely do away with the MICRA framework which has been in place since 1975. 

In a nutshell, the legislation, AB 35, sponsored by Assembly Majority Leader Eloise Reyes (D-Colton) and Sen. Tom Umberg (D-Santa Ana), proposes increases in malpractice award payouts for non-economic damages (i.e. pain and suffering). The increases would be as follows: Starting Jan. 1, 2023, the maximum award would increase from the current $250,000 to $350,000, increasing to a maximum of $750,000 over a 10-year period. In cases involving a patient's death, the maximum award cap would increase to $500,000 on Jan. 1, 2023, and increase to $1,000,000 over a 10-year period. After the 10-year period, these awards would be adjusted according to a 2% cost of living increase.

As part of this agreement, the group that was sponsoring the November 8 ballot initiative that proposed doing away with MICRA (the "Fairness for Injured Patients act") would withdraw their initiative in the event that AB 35 is signed into law by the Governor. This would have to occur by June 29, because this is the last day to withdraw a ballot initiative.  

So, who's really behind this agreement? Trial lawyers. It's pretty simple, really. They stand to reap the cut of higher payouts, and California becomes a more appealing state in which to sue doctors. Meanwhile, it seems that the CMA is either asleep at the wheel or has no interest in representing actual working physicians who expose themselves to medical liability every single day. 

The bill will have to work its way through the Assembly, so we'll see what other kinds of wheeling and dealing occurs before this is all over. Stay tuned...