GOVERNOR NEWSOM SIGNS LEGISLATION TO MODERNIZE CALIFORNIA’S MEDICAL MALPRACTICE SYSTEM PUBLISHED: MAY 23, 2022 SACRAMENTO – Governor “ I ’ m p ro u d to h ave G av i n N ews o m to d ay worked together with all signed AB 35, legislation stakeholders to get this to modernize the system done. AB 35 provides a for awarding damages better system for both in medical malpractice providers and patients, cases in California. The creating a fair process that legislation, put forth by will have a real impact on Assembly Majority Leader Californians for decades Eloise Gómez Reyes to come,” said Assembly and State Senator Tom Majority Leader Eloise Umberg, was supported Gómez Reyes. by consumer groups, trial “With today’s signing of attorneys, health care AB 35, we have achieved Governor Newsom signs MICRA modernization legislation insurers, and health care what few thought was providers – marking the end to one of the longest running possible. This historic moment happened because the two sides political battles in California politics. of the ballot measure campaign put differences aside, found The measure is co-sponsored by the Consumer Attorneys of common ground, and recognized a rare opportunity to protect California and Californians Allied for Patient Protection. It makes both our health care delivery system and the rights of injured two significant changes to the Medical Injury Compensation patients. We are immensely grateful to the Legislature and Reform Act (MICRA) by restructuring MICRA’s limit on attorney Governor Newsom for helping to codify this landmark agreement fees and raising MICRA’s cap on noneconomic damages. in law. California’s new modernized MICRA statutes will provide “After decades of negotiations, legislators, patient groups, predictability and affordability of medical liability insurance and medical professionals have reached a consensus that rates for decades to come, while protecting existing safeguards protects patients and the stability of our health care system,” against skyrocketing health care costs. The modernized law will said Governor Newsom. also bring greater accountability, patient safety and trust by Existing law places limitations on the contingency fee an making it possible for physicians and patients to have a full and attorney can contract for or collect. The current system ties open conversation after an unforeseen outcome. CMA is proud to the limits to the amount recovered. An attorney can collect 40 have been part of this landmark achievement for the benefit of all percent of the first $50,000 recovered, 33 percent of the next Californians. We look forward to a new era of long-term stability $50,000, 25 percent of the next $500,000, and 15 percent of around MICRA that will allow California’s physician and provider anything that exceeds $600,000. This legislation instead ties communities to focus on other ways to improve access to care tiered fee limits to the stage of the representation at which the and public health for all Californians,” said California Medical amount is recovered. Association President Robert E. Wailes, M.D. Additionally, this legislation increases the existing $250,000 “Injured patients deserve to be fairly compensated when their cap on non-economic damages and provides for future increases rights have been violated, and we commend the leadership of to account for inflation. The legislation establishes two separate Governor Newsom to help get this done. Injured patients and their caps, depending on whether a wrongful death claim is involved. families are better off under the modified MICRA, and we look In a wrongful death case, the cap increases to $500,000. Each forward to continuing to serve in the best interest of our clients,” January 1st thereafter, this cap increases by $50,000 until it said Consumer Attorneys of California President Craig M. Peters. reaches $1 million. If the medical malpractice case does not For full text of the bill, visit: http://leginfo.legislature.ca.gov. involve wrongful death, the cap starts at $350,000, and increases https://www.gov.ca.gov/2022/05/23/governor-newsom-signseach year by $40,000 until it reaches $750,000. legislation-to-modernize-californias-medical-malpractice-system/ WWW.SFMMS.ORG
APRIL/MAY/JUNE 2022 SAN FRANCISCO MARIN MEDICINE
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