House Approves Med Mal Cap
By Steven Brostoff, Washington Editor
NU Online News Service, Mar. 14, 8:30 EST--By a 229-196 vote, the House of Representatives has approved legislation establishing a $250,000 cap on non-economic damages in medical malpractice cases.
The legislation, H.R. 5, is strongly backed by the insurance industry, which cites skyrocketing liability costs as the main factor behind the affordability and availability crisis in medical malpractice insurance.
In addition to the cap on non-economic damages, H.R. 5 caps punitive damages in medical malpractice cases to $250,000 or two times economic damages, whichever is greater.
In addition, it establishes specific time frames during which plaintiffs must file medical malpractice lawsuits.
With final House action on H.R. 5, the focus will now shift to the Senate, which is not expected to follow the House's lead. Industry representatives tell National Underwriter that top Senate staffers are saying that a $250,000 cap will never pass.
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