Iowa’s legislators push proposal to cap damages

Republican legislative leaders in Iowa are hoping to cap excessive damage awards with a proposal that would slap a $500,000 limit on punitive damages assessed in medical malpractice lawsuits.

Senate Republican President Jeff Lamberti said doctors are being forced out of their practices because of soaring insurance costs and that a rural state like Iowa can’t afford to have doctors leave their practices.

Under the GOP proposal, patients who win a medical malpractice lawsuit could collect fully for economic damages such as health costs and lost wages, but the non-economic recovery would be limited to $500,000, the Associated Press reported.

The Legislature passed a $250,000 limit on punitive damages several years ago, but the measure was vetoed by Gov. Tom Vilsack, a former president of the Iowa Trial Lawyers Association.

Lawmakers supposedly increased the award limit in part to meet the Governor’s objection, but that move seemed to have little effect.

The issue pits two of the most powerful interest groups in the state against each other. Doctors argue the soaring cost of malpractice insurance is driving many out of business and lawyers argue that patients who are injured by incompetent doctors shouldn’t surrender their rights to seek damages.

In unveiling their legislation, the Republicans brought along doctors who told of their experiences with soaring insurance costs. One physician said his malpractice insurance had quadrupled. Another physician said the current legal system provides incentive to pursue cases, many of which are frivolous.

GOP leaders introduced their measure, modeled after legislation in Illinois, that limits punitive damages against physicians to $500,000, and $1 million for hospitals. That legislation was signed into law by Illinois Gov. Rod Blagojevich.

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