Undoing MICRA

Law360, New York (September 30, 2014, 7:53 AM EDT) -- It has been over 35 years since California became a leader in health care reform, addressing the malpractice insurance crisis in a measured way. In 1975, the Medical Injury Compensation Reform Act ("MICRA") capped non-economic damages at $250,000 and limited contingency fees that plaintiff's attorneys could charge injured plaintiffs according to a sliding scale. No limits were place on the amounts that an injured plaintiff could recover for medical care, lost earnings and other economic damages. The sliding scale provides for a limit of: 40 percent of the first $50,000 recovered, 35 percent of the second $50,000, 25 percent of the next $500,000 and 15 percent of recoveries over $600,000. Attorney's fees on a $1,000,000 recovery may not exceed $238,333, a decrease of $95,000 over the usual one-third contingency fee. The decrease in fees that can be charged benefits the injured plaintiff. Attempts to amend or repeal MICRA and to challenge it in the courts have occurred regularly since its enactment....

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