Agreement Reached to Avert MICRA Initiative Fight

An agreement was announced between all the major stakeholders involved in the November Ballot Initiative that would have eliminated many of the important protections provided by MICRA. CSP is a member of CAPP and we are sharing their announcement issued today. This sets the stage to remove the initiative from the November ballot:

CAPP Coalition Members,


We are pleased to announce that key stakeholders have come together in good faith and common cause to reach agreement on proposed legislation to modify California’s Medical Injury Compensation Reform Act of 1975 (or MICRA). 


After decades of debate about the need to ensure health care that is accessible and affordable for all while balancing appropriate compensation for Californians experiencing health care-related injury or death, this agreement strikes a new balance by doing two things:


  • Extends the long-term predictability and affordability of state liability protections for those providing medical care in California, and


  • Provides a fair and reasonable increase to limits on non-economic damages (there is no cap on economic damages such as medical costs or lost salaries) for medical malpractice starting January 1, 2023 – with gradual increases thereafter. 


The revised framework includes several provisions that would update MICRA while continuing its medical liability protections. The most central provision would change the limits on non-economic damages. Current law limits recovery of non-economic damages to $250,000. The proposal will increase the existing limit to $350,000 for non-death cases and $500,000 for wrongful death cases on the effective date of January 1, 2023. This will be followed by incremental increases over 10 years to $750,000 for non-death cases and $1,000,000 for wrongful death cases, after which a 2.0% annual inflationary adjustment will apply.


Under this agreement, the rights of patients are protected, as are MICRA’s essential guardrails ensuring broad-based health access.  


More significantly, this compromise demonstrates a unified commitment by all stakeholders to put the interests and wellbeing of Californians ahead of historic conflicts. In doing so, we continue to ensure that, in America’s largest state, patients and their families are cared for in all ways. 


Click here to read the joint press statement announcing the agreement.

 

Next Steps in the Process

 

California law allows proponents to withdraw a measure from the ballot if there is an agreement before the deadline of June 30th. With stakeholders now in agreement about moving forward, both sides are working in coordination with the governor’s office and legislative leaders to advance legislation that would be finalized before the initiative withdrawal deadline.

 

Assuming expedited approval by the legislature and governor, the updates to MICRA would take effect January 1, 2023. This year’s ballot measure that would have dismantled MICRA will not appear on the November ballot, and no future ballot measures would be needed for the adjustments of the cap noted above to take effect.

 

We will share additional updates as we move forward and appreciate your commitment to protecting access to care for all Californians. 

 

 

Lisa Maas

Executive Director

Californians Allied for Patient Protection

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