California Increases Noneconomic Damage Limits for Medical Malpractice Claims

On May 23, 2022, Governor Newsom signed Assembly Bill 35 (“AB 35”) agreeing to increase noneconomic damages recoverable for medical malpractice claims. The bill codifies a compromise between competing interest groups to avoid a costly ballot fight on this issue in November. The prior rule was enacted in 1975 under the Medical Injury Compensation Reform Act (“MICRA”) and remained unchanged since that time. Specifically, the rule capped recovery of noneconomic (pain and suffering) damages at $250,000 for medical malpractice suits.

Under the AB 35 compromise, the cap on noneconomic damages will increase to $350,000 starting January 1, 2023, and will increase gradually over a 10-year period to $750,000. Notably, if the original cap instituted in 1975 were increased for inflation, the limit would be $1.3 million today. In the cases involving a patient’s death (wrongful death claim), the cap on noneconomic damages will increase to $500,000 on January 1, and increase to $1 million over the next decade. At the end of the decade, the cap will be adjusted annually by two percent. Additionally, a patient would be eligible to receive up to three payments in lawsuits that involve multiple doctors, nurses or hospitals.