California’s MICRA CAP is totally Archaic, Unfair and Unrealistic

Written by Adam Peck Category: Elder Law January 26th, 2013 3 min read

If you or someone you love is injured or dies in a medical malpractice case, there are limits to how much money you can recover in court.

A recent challenge to the California state law that caps some damages was struck down in a state appeals court. But the issue may be headed to the state’s high court next.

Holly Stinnett’s husband, Stanley, died after a series of medical mistakes in a hospital.

“Never in my entire life did I ever see myself at 39 being a widow, never,” Stinnett said.

She sued the doctor and the hospital, and the hospital settled just before trial.

A jury found the doctor negligent and awarded Stinnett $1.4 million in medical costs and lost wages and, $6 million for pain and suffering.

However, Stinnett will likely collect much less because of a state law that limits damages for pain and suffering in medical malpractice suits at $250,000.

The California State Legislature passed the Medical Injury Compensation Reform Act — or MICRA — back in 1975.

The state legislature was supposed to keep doctors’ insurance rates reasonable so they wouldn’t leave California to practice somewhere else.

Dr. Paul Phinney, who works for the California Medical Association, said MICRA has held doctor insurance premiums down.

“MICRA stabilized that situation and provided a mechanism of compensating patients fairly, while still preserving access for patients to quality, affordable medical care,” Phinney said.

Under MICRA, medical costs and lost wages — called economic damages — are unlimited.

“The more money that’s pulled out of health care into the pockets of personal injury lawyers, the less money that’s available to health care,” Phinney said.

Pain and suffering — or non-economic damages — are limited to $250,000 dollars.

Chris Dolan with Consumer Attorneys of California says that’s not justice.

“If you lose your husband, your wife, your child, your leg, that value is $250,000,” Dolan said.

What’s worse, Dolan says, economic damages don’t apply to the elderly and children.

Those patients or their families can only collect up to $250,000.

“It was just a terrible thing to do to people who’ve been harmed and a great thing to do to the insurance companies’ bottom line,” Dolan said.

“You can’t replace what I’ve lost, but for future people, for the people out there that do need that, to get started again, they need to change the law,” Stinnett said.
Contact Steven Peck’s Premier Legal toll free at 1-866-999-9085 to talk to an experienced elder law and nursing home abuse and neglect lawyer or on the world wide web at www.premierlegal.org

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.