The Medical Injury Compensation Reform Act of 1975 (MICRA) is California's nationally-acclaimed tort reform law. This section provides information on why MICRA must be protected, recent MICRA news, and access to additional MICRA resources.
Why is MICRA Important?
During the early and mid-1970s the increasing number of extremely large medical malpractice awards prompted nearly all commercial malpractice insurance companies to leave California. The two remaining companies had increased the cost of malpractice coverage so significantly that few doctors could afford it. In a period of just a few months, 60% of all doctors in California were operating without malpractice coverage. After temporary closure of many physician offices and clinics, and a physician 'sit-in' in the Governor's office, the Legislature called a special session to address the malpractice insurance crisis. As a result, the Medical Injury Compensation Reform Act (MICRA) was born.
What Does MICRA Do?
MICRA is the centerpiece of affordable and accessible, high quality medical care in California and is an enduring public policy success. It ensures that patients suffering malpractice shall receive full and unlimited compensation for actual damages and, at maximum, an additional quarter-million dollars for non-economic damages and "pain and suffering." It contains meaningful and reasonable tort reform to reduce litigation and moderate its costs.
Why Has MICRA Suceeded?
Prior to the MICRA reforms the cost of malpractice insurance in California was exceeded only by the cost for physicians practicing in New York City. Since MICRA’s passage the average national cost of malpractice coverage has increased by 854%, while California’s costs have risen only 287%. Current California malpractice insurance costs are in the lower half of rates among all states, and rates in Northern California are in the lower third among all states. In comparison to the states with the highest malpractice insurance premiums, none of which have MICRA reforms, rates in Southern California are about 40% of those rates, and rates for Northern California are almost half again lower than rates in Southern California.
