NFIB supports medical liability reform legislation that caps non-economic damages at $250,000, abolishes joint and several liability, implements a sliding scale for attorneys' contingency fees, and reforms the collateral source rule.

  • In the early 1970s, California enacted the landmark Medical Injury Compensation Reform Act legislation to address the state's liability insurance crisis. By limiting damage awards, MICRA has succeeded in maintaining a medical liability system that both protects patients and keeps insurance affordable for providers.
  • Today, the country is facing a similar liability crisis. In many states, large jury awards have caused insurance premiums to increase at astronomical rates and led to severe shortages of specialists such as obstetricians and emergency room doctors. The medical liability crisis threatens both the affordability and availability of health care for small businesses.
  • According to the Medical Insurance Exchange of California's 1998 Large Loss Trend Study, from 1994-1998, California's tort reforms have redirected more than $77 million of high damage awards to the plaintiff (the one actually injured) instead of to attorneys.
  • Critical shortages in the health care system have led to increased costs for small-business owners who are voluntarily providing health care for their employees. More and more small-business owners are finding themselves in the position of having to drop health insurance coverage or greatly increase the employees' share of the cost.
  • Between 1985-1998, the Physician Insurers Association of America estimates that defending against meritless medical malpractice claims -- those that were dropped, withdrawn, or dismissed -- cost over $3 billion nationally.
  • Data compiled by the PIAA shows that nearly 70 percent of all medical malpractice claims result in no payment to the injured parties. However, in 2000, it cost on average $23,211 to defend each of these claims. (PIAA, Claim Trend Analysis, 2000 Edition)
  • While the number of malpractice suits has been holding steady, the average jury award rose to $3.49 million in 1999, up 79 percent since 1993. (Jury Verdict Research, New York Times, September 10, 2001)