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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

A FREE 12-page special report from Captive.com

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance explores the challenges presented by today's business and economic upheaval, as well as the hardening insurance market, and what it means for the captive insurance industry.

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Increased Medical Malpractice Noneconomic Caps Rejected by California Voters

Vote
November 07, 2014
Good news for captives writing California malpractice insurance. Voters in California resoundingly defeated Proposition 46 by a voting percentage of 67.1 to 32.9. The proposition would have raised the cap of $250,000 on noneconomic pain and suffering to $1.1 million.

Opponents asserted passage of the proposition would have raised malpractice premiums and health care costs. This fact is supported by "Medical Malpractice Reform: Noneconomic Damages Caps Reduced Payments 15 Percent, with Varied Effects by Specialty," a new Health Affairs study, which was recently cited in a Captive.com article and which concluded noneconomic damage caps reduced medical malpractice claim payments by 15 percent.

Proposition 46 as proposed would also have subjected doctors to random drug and alcohol tests. Physicians who prescribe narcotics would also have been required to use the CURES system, a statewide database that can indicate whether a patient is doctor shopping for dangerous drugs.

Opponents of Proposition 46 included, among others, malpractice insurance companies, the California Medical Association, and the California Teachers Association.
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