Information provided courtesy of The Medical Society of Virginia's Governmental Affairs Department. www.msv.org

Medical Malpractice Cap

Issue Background

• Virginia’s medical malpractice cap was passed in 1976 in response to Virginia’s medical
  malpractice crisis. As physicians faced skyrocketing med mal rates, the cap was successful in
  stabilizing the market and reducing the amount of awards. The cap also helped ensure that
  insurance companies would continue to write policies in Virginia.
  
• Virginia’s cap has been upheld twice by the Virginia Supreme Court. In both cases, justices
  cited the existence of the state’s Birth Injury Fund as a key element of the cap’s constitutionality.

Challenge

• Looming on the horizon is the maturation of the cap. In 1999 the cap began annual increases
  that will culminate at $2 million in July 2008. Legislation from other organizations could seek
  changes to Virginia’s malpractice cap such as further increases or elimination of the cap.
  
• The General Assembly has had a high rate of turnover among its members since the cap was
  passed. There are 53 new members of the House of Delegates alone. Educating members on the
  positive effect the cap has had on the malpractice environment will be a high priority.
  

Action

During the 2007 General Assembly Session, MSV will focus on legislator education related to
the benefits of the medical malpractice cap. Key points include:

• The cap has had a positive effect on stabilizing the malpractice environment in Virginia.

• The cap has helped ensure that insurers will continue to write policies in Virginia.

• The presence of the cap helps ensure that physicians remain in practice in Virginia.

• The presence of the cap encourages physicians to relocate to Virginia and establish new
practices

• The cap makes Virginia an attractive place for insurers to do business.