Medical Injury Compensation Reform Act
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The Medical Injury Compensation Reform Act (MICRA) of 1975 was a California law designed lower medical malpractice premiums for Californians.
[edit] Parts
Micra Consists of the following parts:
- Damage Caps - non-economic damages are limited to $250,000
- Attorney's fees - attorney fees that are taken from the amount of the settlement are limited.
- Time Limits - older suits are banned.
- Binding Arbitration
- Periodic Payments - doctors are allowed to pay the award over time.
[edit] Results
Between 1985 and 1988, malpractice premiums rose 47 percent.[1] After 1988, the insurance premiums in California experienced a decrease. It is contested as to whether this decrease was a result of proposition 103. Proposition 103 enacted Section 1861.01 of the California Insurance Code, which explicitly required the rollback of insurance premiums by "at least 20%".[2]
[edit] References
- ^ The Foundation for Taxpayer and Consumer Rights, How Insurance Reform Lowered Doctors' Medical Malpractice Rates in California: and How Malpractice Caps Failed, http://www.consumerwatchdog.org/documents/1008.pdf (March 7, 2003)
- ^ Cal. Ins. Code § 1861.01.
