Featured News 2016 Indiana Revives Med Malpractice Cap

Indiana Revives Med Malpractice Cap

On Feb. 29, 2016, Indiana lawmakers revived their efforts to increase the state's cap on medical malpractice damages.

The House Judiciary Committee took an unrelated bill, changing its language so Indiana would increase its cap on medical malpractice damages; the bill passed the Judiciary Committee by an 11-1 vote.

Indiana has one of the lowest caps on medical malpractice damages in the nation, so this legislative change would be the first increase in nearly twenty years, a welcome change for plaintiffs.

Indiana lawmakers propose to increase the cap on medical malpractice cases from $1.25 million to $1.65 million as of 2017. The cap would increase periodically until it reached $2.25 million by the year 2031 for inflation purposes.

Lawmakers: Cap is Outdated

Sen. Brent Steele is the man behind the proposed changes; his message to opponents, many of whom are doctors, is that the current cap of $1.25 million is too low and outdated. He said it's important that that cap is raised periodically.

"We, the legislature, don't do a very good job about keeping pace with the cost of living," said Steele.

One of the opponents of the bill, M. Rinebold, director of government relations for the Indiana State Medical Association, said that the state's favorable medical malpractice act is the best in the country, and a tool for recruiting doctors.

Rinebold said that the cap increase would lead to more lawsuits, and they are "afraid the number of complaints will continue to rise," he said.

State lawmakers believe that because the current cap is low, it's vulnerable to legal challenges. Of all states, only three place a cap on total damages, and Indiana has the lowest cap of the three, according to the Indiana Hospital Association.

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