California Psychiatric Association Opposes
AB 250, As Introduced
AB 250 would vitiate the Medical Injury Compensation Reform Act (MICRA)
by removing the cap on noneconomic damages in many cases. In California,
professional liability insurance is affordable largely as a result of the
existence of MICRA. When this important law was enacted, malpractice insurance
costs were out of control, with doctors consequently leaving California
or going uninsured. Because of MICRA's enactment, doctors in California
carry adequate liability Insurance, patients are compensated when medical
negligence occurs, litigation costs arc held down, health care costs are
controlled, and doctors are willing to continue to perform risky medical
procedures on extremely sick patients.
Several of the exceptions to the cap proposed by AB 250 describe conduct
which would merit the award of punitive damages, and there is certainly
no cap on those damages. With these exceptions in the law insurance carriers
would face a level of uncertainty of risk which would cause them to raise
rates, perhaps in large amounts. This is likely to result in doctors having
to increase their fees, which would have the greatest negative impacts on
lower income Californians.
Because of these concerns, the California Psychiatric
Association
must oppose AB 250.
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