The House Judiciary Committee defeated HB 606, which would have repealed the $15,000 annual increase in the cap on noneconomic damages that may be awarded in a health care malpractice claim.

The Maryland Chamber of Commerce supported this bill, which would have stopped the annual increases in the noneconomic damage cap that are scheduled to resume in 2009. During the 2004 special session, the General Assembly wisely stopped for four years further growth in the cap on noneconomic damages. At $650,000, Maryland’s noneconomic damage award cap is already one of the highest in the country. Further escalation in this cap would simply increase noneconomic damage awards and fuel further increases to high medical liability insurance rates that are threatening access to certain medical specialties.

Access to health care is vitally important to Maryland businesses as employers, health care institutions, and users of health care. The General Assembly’s efforts at the 2004 special session were a stop-gap measure that must be further refined. The Maryland chamber strongly believes that additional meaningful reforms to the calculation of medical liability damages are necessary in order to reduce the cost of liability insurance.

To view the committee’s vote, click here (pdf).