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Texas's Cap for Medical Malpractice Damages
Following the successful implementation of a similar act in California, in 1977, Texas enacted the Medical Liability and Insurance Improvement Act (MLIIA). This law capped compensatory damages for medical malpractice at $500,000. These include “economic” damages, such as lost wages, extra costs, and repair or replacement. However, a 2004 Supreme Court decision ruled that this cap applies only to wrongful death and survival action cases.
In 1995, the Legislature amended Texas Civil Practice & Remedies Code at Section 41.008, limiting non-economic damages to $250,000 apiece for doctors, hospitals, and nursing homes and other institutions, for a maximum of $750,000 per lawsuit. In 2003, the Medical Malpractice and Tort Reform Act codified the amendments in Section 74.301. The act caps “general damages” for pain and suffering, emotional distress, and loss of companionship, as well as “punitive” damages which punish the doctor.
The goal of these caps is to “reform” tort law (tort law concerns negligence or carelessness), and reduce plaintiff’s lawyers’ fees. Another goal is to curb skyrocketing insurance rates and the cost of healthcare, as well as to prevent excessive “defensive medicine.”
Defensive medicine occurs when a doctor is too cautious in weighing the risks and rewards of a procedure. The doctor may choose to do nothing at all in order to avoid liability, resulting in injury to the patient. Doctors have gone out of business because of high insurance rates. Consumers were paying more for the cost of healthcare.
It is controversial whether caps for medical malpractice damages are effective. Medical associations have praised the caps for lowering insurance rates, enabling specialists to stay in business. However, attorneys and civil action groups have criticized medical malpractice caps for not actually lowering the cost of healthcare. These groups relate stories of injured children who experience pain and suffering far greater than $250,000.
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