--- title: "California MedMal: What is MICRA and How It’s Likely to Change" description: What is MICRA? The Medical Injury Compensation Reform Act set a cap on malpractice payouts in California. Now, a new bill looks to increase those limits. image: https://www.ethosinsurance.com/hubfs/Industry%20News%20on%20the%20Metal%20Gears%20on%20Black%20Background..jpeg --- [Skip to main content](https://www.ethosinsurance.com/blog/california-medmal-what-is-micra-and-how-its-likely-to-change#maincontent) [«  View All Posts](https://www.ethosinsurance.com/blog) [ Industry News ](https://www.ethosinsurance.com/blog/topic/industry-news) # California MedMal: What is MICRA and How It’s Likely to Change May 12th, 2022 | 3 min. read By [TJ Payne](https://www.ethosinsurance.com/blog/author/tj-payne) ![](https://www.ethosinsurance.com/hubfs/Industry%20News%20on%20the%20Metal%20Gears%20on%20Black%20Background..jpeg) Medical Malpractice cases in California have had a hard cap of $250,000 for pain and suffering since 1975 following the passing of the [Medical Injury Compensation Reform Act, commonly known as MICRA](https://en.wikipedia.org/wiki/Medical_Injury_Compensation_Reform_Act). Now, a bill (AB 35) with across the aisle support is attempting to change that. Assuming AB 35 passes through [California Legislature, Governor Gavin Newsom would need to sign the bill](https://capitolmuseum.ca.gov/learn/about-the-government/life-cycle-of-a-bill/) into law before June 28th. Should this come to pass (as many in California expect it to) we would see an overhaul of the cash settlement system for California MedMal cases for the first time in [nearly 50 years](http://www.caoc.org/docDownload/675009). ![Close up of a lot of law reports in library](https://www.ethosinsurance.com/hs-fs/hubfs/Close%20up%20of%20a%20lot%20of%20law%20reports%20in%20library.png?width=400&name=Close%20up%20of%20a%20lot%20of%20law%20reports%20in%20library.png) > “[The new] cap on pain and suffering awards [will be] $350,000 beginning Jan. 1. That amount would gradually increase over a 10-year period to $750,000. > > In cases involving a patient’s death, the cap on pain and suffering awards would increase to $500,000 on Jan. 1 and would grow to $1 million over the next decade. > > After that, the cap would be adjusted annually by a 2% cost of living increase.” **Melody Gutierrez, LA Times** ![doctor handshake with a patient at doctors bright modern office in hospital](https://www.ethosinsurance.com/hs-fs/hubfs/doctor%20handshake%20with%20a%20patient%20at%20doctors%20bright%20modern%20office%20in%20hospital.jpeg?width=400&name=doctor%20handshake%20with%20a%20patient%20at%20doctors%20bright%20modern%20office%20in%20hospital.jpeg) While the AB 35 would likely result in market changes, it should be noted that [numerous doctors’ groups in California have marked this as a win](https://www.thedoctors.com/about-the-doctors-company/legislative-regulatory-and-judicial-advocacy/micra-news/). AB 35, were it signed into law, would thereby [displace a ballot measure](https://lao.ca.gov/BallotAnalysis/Initiative/2019-018) that aims to increase MedMal payouts to 1.2 million and removed all caps from catastrophic-injury claims. > “The compromise ensures we are keeping healthcare affordable and accessible, which is a priority for us, while balancing the appropriate compensation for Californians who experience healthcare-related injuries.” **Jodi Hicks, President of Planned Parenthood of California** For more information, you can read the [full article here](https://www.latimes.com/california/story/2022-04-27/california-malpractice-payouts-would-rise-under-deal-to-avoid-costly-ballot-fight). --- ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ Want to keep up with more industry news? Sign up today to stay up to date with all things Ethos and the latest industry news.   Retail Insurance Agents! Schedule time with an Ethos healthcare professional liability expert today to learn how partnering with Ethos helps you achieve success in the healthcare/medical professional liability insurance market.       [ TJ Payne ](https://www.ethosinsurance.com/blog/author/tj-payne) TJ’s work spans marketing, operations, technology, and process development, all centered on improving the experience of retail insurance agents. Before joining Ethos in 2022, he held marketing roles at Western Washington University and Amazon, following nearly a decade in the service and hospitality industry. That background continues to shape his approach to communications, emphasizing clarity, responsiveness, and long-term relationship building over persuasion. TJ is especially drawn to solving complex brand and operational challenges, with a focus on strengthening Ethos’ position as a premier wholesale partner specializing in Healthcare Professional Liability (HPL) insurance. Outside of work, he trains in boxing and enjoys reading and writing, bringing the same patience, discipline, and attention to craft to every aspect of his work and life. Connect: [mailto:tpayne@ethosinsurance.com](mailto:tpayne@ethosinsurance.com) Don't forget to share this post: ## Related Articles [### Industry News: TDC Completes Acquisition of ProAssurance June 26th, 2026|1 min read ](https://www.ethosinsurance.com/blog/industry-news-tdc-completes-acquisition-of-proassurance) [### Zurich to Acquire Beazley in £8 Billion ($11 Billion) Deal February 26th, 2026|3 min read ](https://www.ethosinsurance.com/blog/zurich-to-acquire-beazley-in-8-billion-11-billion-deal) [### Industry News: Sompo to Acquire Aspen in $3.5 Billion Cash Deal September 3rd, 2025|2 min read ](https://www.ethosinsurance.com/blog/industry-news-sompo-to-acquire-aspen-in-3.5-billion-cash-deal) [### Industry News: CARE Risk Retention Group Placed into Rehabilitation by Vermont DFR April 29th, 2025|1 min read ](https://www.ethosinsurance.com/blog/industry-news-care-risk-retention-group-placed-into-rehabilitation-by-vermont-dfr) [### Hudson Launches Digital Health Program April 10th, 2024|1 min read ](https://www.ethosinsurance.com/blog/hudson-launches-digital-health-program) [### American Physician Partners (APP) Goes Out of Business; Hardships Following No Suprises Act (NSA) August 22nd, 2023|1 min read ](https://www.ethosinsurance.com/blog/american-physician-partners-app-goes-out-of-business-hardships-following-no-suprises-act-nsa) [### MagMutual Completes Acquisition of MDAdvantage August 9th, 2023|1 min read ](https://www.ethosinsurance.com/blog/magmutual-completes-acquisition-of-mdadvantage) [### MagMutual Announces New Combination Cyber & Regulatory Liability Policy April 28th, 2023|1 min read ](https://www.ethosinsurance.com/blog/magmutual-announces-new-combination-cyber-regulatory-liability-policy) [### Pennsylvania Loosens Venue Laws for Medical Malpractice Suits November 3rd, 2022|3 min read ](https://www.ethosinsurance.com/blog/pennsylvania-loosens-venue-laws-for-medical-malpractice-suits) [### Core Specialty Acquires Hallmark E&S November 1st, 2022|2 min read ](https://www.ethosinsurance.com/blog/core-specialty-acquires-hallmark-es) [### What Is the New MICRA and What Does It Change? 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