Modifications Made to California’s MICRA Law
May 24, 2022
Golden State’s medical liability non-economic damages cap to increase for first time after nearly five decades
California’s Medical Injury Compensation Reform Act of 1975 (MICRA) has long been considered the gold standard for medical liability protection. Over the years, numerous legal, legislative and ballot initiatives failed to overturn the $250,000 cap on non-economic damages for medical liability cases. That’s about to change. New legislation has passed initiating significant changes for MICRA.
The amendments to MICRA impact several aspects of the law. The primary change is an increase to the cap on non-economic damages. For non-death cases, the cap on non-economic damages will increase to $350,000, with incremental increases over the next 10 years to $750,000. For cases involving a death, the cap on non-economic damages will increase to $500,000, with incremental increases over the next 10 years to $1 million. After ten years, the limitations on non-economic damages will be adjusted annually by 2% to account for inflation.
Attorney contingency fee limits are also changing, new categories of damages are being established, and there will be other discovery and evidentiary modifications.
This legislation recently passed in the California Assembly and this week was signed by Gov. Gavin Newsom. It will affect cases filed on or after January 1, 2023.
If you have questions, please contact the ISMIE Legal Division by email.
Golden State’s medical liability non-economic damages cap to increase for first time after nearly five decades
California’s Medical Injury Compensation Reform Act of 1975 (MICRA) has long been considered the gold standard for medical liability protection. Over the years, numerous legal, legislative and ballot initiatives failed to overturn the $250,000 cap on non-economic damages for medical liability cases. That’s about to change. New legislation has passed initiating significant changes for MICRA.
The amendments to MICRA impact several aspects of the law. The primary change is an increase to the cap on non-economic damages. For non-death cases, the cap on non-economic damages will increase to $350,000, with incremental increases over the next 10 years to $750,000. For cases involving a death, the cap on non-economic damages will increase to $500,000, with incremental increases over the next 10 years to $1 million. After ten years, the limitations on non-economic damages will be adjusted annually by 2% to account for inflation.
Attorney contingency fee limits are also changing, new categories of damages are being established, and there will be other discovery and evidentiary modifications.
This legislation recently passed in the California Assembly and this week was signed by Gov. Gavin Newsom. It will affect cases filed on or after January 1, 2023.
If you have questions, please contact the ISMIE Legal Division by email.