GOVERNOR NEWSOM SIGNS AB 35, LEGISLATION TO MODERNIZE CALIFORNIA'S MEDICAL MALPRACTICE SYSTEM

[The information below has been provided by the Governor's Office; click here to view the complete press release.]

On Monday, May 23, 2022 Governor Newsom signed AB35, legislation to modernize California's Medical Injury Compensation Reform Act (MICRA).  The signing marks the end to one of the longest running political battles in California politics.

The landmark agreement, put forth by Assembly Majority Leader Eloise Gomez and State Senator Tom Umberg, was supported by consumer groups, trial attorneys, health care insurers, and health care providers.  This legislation makes two significant changes to the MICRA by restructuring MICRA's limit on attorney fees and raising MICRA's cap on noneconomic damages.

Existing law places limitations on the contingency fee an attorney can contract for or collect. The current system ties the limits to the amount recovered. An attorney can collect 40 percent of the first $50,000 recovered, 33 percent of the next $50,000, 25 percent of the next $500,000, and 15 percent of anything that exceeds $600,000. This legislation instead ties tiered fee limits to the stage of the representation at which the amount is recovered.     

Additionally, this legislation increases the existing $250,000 cap on non-economic damages and provides for future increases to account for inflation. The legislation establishes two separate caps, depending on whether a wrongful death claim is involved. In a wrongful death case, the cap increases to $500,000. Each January 1st thereafter, this cap increases by $50,000 until it reaches $1 million. If the medical malpractice case does not involve wrongful death, the cap starts at $350,000, and increases each year by $40,000 until it reaches $750,000.

For full text of the bill, visit: http://leginfo.legislature.ca.gov.

Single payer defeated in state assembly

California lawmakers recently shut the door on AB1400, a “single-payer” health care proposal by Assemblymembers Kalra, Santiago, and Lee. Assembly Bill 1400 would havecreated the “California Guaranteed Health Care for All” program and cover all Californians regardless of age, income level, or immigration status.The bill would also force physicians to choose between being compensated in a “fee-for-service” plan or accepting an hourly rate as an employee of the State of California.

After spirited debate at the committee level, the author decided to not bring the bill up for a full vote of the Assembly. Because the bill did not receive a vote, it is now defeated. OPSC is working with the larger health care community, Governor’s office, and state legislature to address access and affordability issues in the health care marketplace.

Mandatory ePrescribing Begins Jan. 1

Beginning January 1, 2022 physicians must transmit prescriptions electronically. Some physicians have expressed concern with the new requirement and its cost. 

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