State Legislative Changes on Medical Liability Damage Caps Spark Mixed Reactions
January 14, 2025
At ISMIE, we are constantly monitoring what’s happening in different states concerning medical professional liability related changes. Here are some recent examples from a few states as 2024 ended – some good news and some not so good news:
- In Michigan, state legislative bills to dramatically increase the cap on noneconomic damages in medical liability claims and to expand the scope of wrongful death damages were defeated. The onerous proposal was introduced in the waning days of a lame duck session.
- In New York, Governor Kathy Hochul vetoed the “Grieving Families Act,” legislation to expand wrongful death damage and those eligible to file claims for such damages. This is the third time the governor has vetoed the legislation. She noted that her previous concerns about costs associated with the bill were not addressed by the legislature.
- On the not so good news side, the threat of a ballot initiative in Colorado concerning damage caps led to intense negotiations but eventually a compromise was reached. The agreement allows noneconomic damage cap for medical liability claims to increase from $300,000 to $875,000 over five years and then be adjusted to inflation biannually. It also establishes a wrongful death cap in medical liability cases of $555,000 and increases that amount incrementally to $1,575,000 in 2029, after which regular inflation adjustments take effect.
We will continue to monitor legislative action at the state level nationwide and keep ISMIE policyholders up to date on changes throughout 2025.
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