Texas passes tort reform; awards capped

Add Texas to the growing number of states to pass a monetary cap on noneconomic damages in medical liability lawsuits. In Texas, a $250,000 cap has been placed on a per incident basis, according to a story in AMNews, the online newspaper of the American Medical Association.

The law is set to become effective Sept. 1, but the public will have an opportunity to vote on companion legislation on Sept. 13 to approve a constitutional change to make the cap legal.

In Texas, opponents of the reform law argue that increased medical insurance regulations would be more effective than a cap on jury awards, the AMNews reported.

The AMA has named 18 states in a “liability reform crisis” because of increased insurance premiums. In addition to Texas, several other states are hoping to emulate California’s reform laws, which introduced a $250,000 cap that has proved effective in reducing insurance rates.

Nevada recently passed liability reforms but did not succeed in passing the $250,000 cap. Voters in that state will have a chance to vote on the cap in November 2004. Both Florida and Pennsylvania are considering similar laws. Oregon is discussing a measure to track and disclose information on the expert witnesses used in liability trials, the AMNews said.

According to the New York Medical Staff Leadership Council, liability lawsuits have increased there; orthopedic surgeons, general surgeons and obstetrician/gynecologists have been most affected.