Insurance companies fund medical malpractice restrictions
Friday, September 18, 2009
In 1975, the California Legislature approved tight restrictions on the amount of money that victims of medical negligence could receive for pain and suffering.
The amount was $250,000 in 1975, and the amount has never been raised.
The main backers of the Medical Injury Compensation Reform Act of 1975 include physicians and dentists, along with nursing home corporations, pharmaceutical companies and, most importantly, the insurance industry.
Californians Allied for Patient Protection (CAPP) is one such backer. It has raised more than $1.5 million in recent years for an array of political campaigns in California.
In addition to receiving money from a liquor distributor, a major drug maker and nursing homes, Californians Allied for Patient Protection has received $768,000 from insurance companies, most of which provide medical malpractice insurance.
Insurance companies that provide medical malpractice coverage are highly profitable, studies have shown.