What proof is there that a $250K cap on non-economic damages is effective?
Physician’s medical liability insurance premiums in California went from the highest in the nation in most specialties to the median or even lower as a result of capping non-economic damages at $250K. From 1976 to 2000, medical liability insurance premiums in the U.S. rose 505%. In California during the same time period, premiums rose 167%. Also, in California the average time to settlement is shorter than the national average, and the average cost of settlement is lower than the national average. This helps to keep medical liability premiums lower in California than in states without a cap on non-economic damages.
