Deal reached to raise cap on California medical malpractice payouts

California healthcare, legal and consumer advocates have agreed on legislation increasing the cap on monetary awards for medical malpractice lawsuits, CalMatters reported April 27. 

The agreement potentially averts a ballot measure that would have put the issue before voters in November, according to the report. The legislation, if passed, will raise the rap for a patient's noneconomic suffering, but at a more incremental rate than the proposed ballot measure. 

If passed, starting in January, cases not involving a patient's death will have a new limit of $350,000, with an increase over the next 10 years to $750,000, according to the report. There will be a 2 percent annual adjustment for inflation after that. 

Cases involving a death will have an increased limit of $500,000 that will increase to $1 million over 10 years, with a 2 percent annual increase after that. 

The current cap is $250,000 and has been in effect since 1975, according to the report. 

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