Common Ground Historic MICRA modernization law puts patients first and prioritizes the stability of affordable access to health care. Governor Gavin Newsom on May 23, 2022, signed Assembly Bill 35 into law, and in doing so put an end to a decades-long political battle and ushered in a new era of stability around malpractice liability. The bill, which passed through the California Legislature with nearly unanimous support, will ensure that health care is accessible and affordable, while balancing compensation for Californians who have experienced health care related injury or death. The modernized law will also bring greater accountability, patient safety and trust by making it possible for physicians and patients to have a full and open conversation after an unforeseen outcome. “This historic moment happened because the two sides of the ballot measure campaign put differences aside, found common ground, and recognized a rare opportunity to protect both our health care delivery system and the rights of injured patients,” said California Medical Association (CMA) President Robert E. Wailes, M.D. “We are immensely grateful to the Legislature and Gov. Newsom for helping to codify this landmark agreement in law.”
A Landmark Achievement
Since California’s landmark medical malpractice reforms – the Medical Injury Compensation Reform Act (MICRA) – were enacted almost 50 years ago, they have successfully struck a balance between compensatory justice for injured patients while maintaining an overall health care system that is accessible and affordable for Californians. California’s physician and provider communities have repeatedly defended MICRA through expensive battles at the ballot, in the courtroom and in the legislature. This year, we were again facing another costly initiative battle. The so-called Fairness for Injured Patients Act, which had qualified for the November 2022 ballot, would have
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CENTRAL VALLEY PHYSICIANS
obliterated existing safeguards for out-of-control medical lawsuits and would have resulted in skyrocketing health care costs. But for the first time in a generation, we were met with an opportunity to achieve a meaningful consensus between competing interests through a revised framework that would protect both the rights of injured patients while keeping MICRA’s essential guardrails solidly in place for patients and providers alike. Californians Allied for Patient Protection (CAPP), the Consumer Attorneys of California, Nick Rowley—author and primary funder of the November ballot measure—and both sides of the initiative fight worked together with the Legislature and Gov. Newsom to craft an agreement that puts patients first and prioritizes the stability of affordable access to health care. “CMA is proud to have been part of this landmark achievement for the benefit of all Californians,” said Dr. Wailes. “We look forward to a new era of long-term stability around MICRA that will allow California’s physician and provider communities to focus on other ways to improve access to care and public health for all Californians.” As part of the agreement, FIPA’s proponents removed it from the November ballot, precluding another costly and unpredictable ballot fight in November.
Modernizing the MICRA Cap
Under the modernized MICRA law reflected in AB 35, which will go into effect on January 1, 2023, the underlying principles of MICRA were preserved – ensuring access to care and protecting our health care delivery system from runaway costs. Important guardrails of MICRA will continue unchanged, including advance notice of a claim, the one-year statute of limitations to file a case, the option of binding
Spring/Summer 2022