Medical Malpractice Caps

Medical malpractice caps have become quite the hot button issue in the last several years. The reason is that in the past medical malpractice caps were seen as the best way to control the cost of malpractice premiums that were skyrocketing. Many people supported the caps, thinking that this was a great way to change the way that medical malpractice suits were handled all the way around. After a few years of instituting the caps in several states, many insurers are saying that medical malpractice caps don’t work.

More on Medical Malpractice Caps

Many of the larger insurers are saying that the medical malpractice caps help to control the spending, but they only see a 1% overall savings, a savings that is not large enough to pass onto the doctors who are paying for the malpractice coverage. This has many people rethinking their support of the medical malpractice caps, since they were first instituted.

Other people believe that the medical malpractice caps are a great thing because it will keep people from getting too greedy in their lawsuits. Most of the caps are associated with non-economic damages, or punitive damages which had been and in some cases, still are, spiraling out of control. The caps simply limit what a court or jury can award to any individual in any one case of medical malpractice.

Medical malpractice caps are a big part of medical malpractice tort reform. Many people would like to make caps a part of a federal malpractice law that will standardize all medical malpractice lawsuits. Many of the aspects of the tort reform proposals involve the caps or support them. Proposed ideas for the tort reform have included:

Limits on pain and suffering damages at $250,000
Three year statute of limitations to initiate any and all lawsuits involving adults
Limits on attorney’s fees in the settlement of judgment
Collateral source benefits allowable as evidence
Payment plans offered for damages of more than $50,000
Guidelines for offering or awarding punitive damages
Doing away with instructing a jury about the limitations of damage awards
Doing away with the ability to award damages against a corporation or company that has an FDA approved product

Medical malpractice caps will probably continue to be an issue that is debated in the future. Doctors like the idea that there is a cap because it puts a damper on the lawsuit process for a lot of people, but they don’t see the difference in their premiums, which makes them wonder where the savings go.