States fired-up on tort reform, cool on $250,000 cap

Only Alaska has passed a limit on noneconomic damages at that level this year. Doctors have had more success getting other liability system changes approved.

By Mike Norbut, AMNews staff. July 4, 2005.

Although tort reform has been a popular topic in state legislatures in 2005, physicians have found that convincing lawmakers to support a $250,000 cap on noneconomic damages is a challenging proposition.

Instead, state physician groups are agreeing to higher limits, such as $350,000 or $500,000, or other reforms in the hopes of stemming the tide of increasing medical liability premiums.

So far in 2005, lawmakers in 48 states have reviewed legislation involving some kind of tort reform, with bills passing in 24 states, according to the National Conference of State Legislatures. That's compared with last year "when maybe there were 10 states that actually passed something," said Trina Caudle, an NCSL research analyst.

Some of the legislation is limited, such as in Arizona, which passed bills that tighten rules on expert witness testimony and allow physicians to express sympathy to patients without having it used against them in court. Other states, such as Georgia, passed measures with more sweeping provisions, including a $350,000 cap on noneconomic damages and patient safety requirements.

While many physicians consider any type of liability reform to be helpful, the success of state legislative efforts often is measured by the ability to achieve a cap on noneconomic damages and, if so, how close to $250,000 it can get. That level is considered the gold standard by many because of the beneficial impact it has had on California's liability market since it was passed there in 1975.