Did you know that if you are injured while receiving medical treatment in Indiana, compensation can be significantly limited in your case? Indiana has had a damage award cap for many years. Doctors and the insurance providers rendering care with their malpractice coverage have been able to reduce damages to very small amounts, with only a small portion of the claim being paid by either party. The award cap in Indiana on medical malpractice awards has been limited for many years. Many people felt it was fair and just legislation when it was enacted. because it protected doctors, patients and their loved ones. In recent years, however, there has been a growing sentiment that the damage cap hasn’t provided justice for some victims. There are instances of gross negligence where some injured parties felt the system let them down.
What is the Indiana Medical Malpractice Cap?
Indiana limits the total amount an injured patient can recover from a medical malpractice claim. This cap applies to all damages combined, including both economic and noneconomic harm. Unlike many states that only limit awards for “pain and suffering,” Indiana’s cap restricts the entire payout. The cap acts as a hard ceiling. If a jury verdict exceeds the legal limit, a judge must reduce the award to the maximum amount allowed. This is one of the most restrictive caps in the country. It continues to influence how all parties evaluate, litigate and settle claims.
Medical Malpractice History and Damage Limits
The damage cap was put into place in 1975, with Indiana leading the way. Over the years, 34 other states have joined Indiana and put in awards caps to prevent enormous punitive damages in cases. When the damage cap was first enacted, doctors and patients could see the law’s benefits. The state also created the Patient’s Compensation Fund (PCF), which is underwritten by a fee added to malpractice insurance in Indiana. The PCF covers some of the expenses of larger claims in malpractice cases using the fees excised from the insurance policies carried by physicians and hospitals.
The medical malpractice damage cap has been raised over the last five years. The maximum award was set at $1.25 million for many years, and in 2017 it was increased to $1.65 million. In 2019, the damage cap was increased again to $1.8 million. Doctors contribute $500,000 per claim to any award, and the PCF covers the remaining amount. Legal fees for attorneys are capped at 32% of the award total.
Who Pays the Cap? Provider vs. Patient’s Compensation Fund
The health care provider (or their insurer) and the Patient’s Compensation Fund (PCF) share the payment. Providers are responsible for the first portion of any settlement or judgment, currently up to $500,000.
If the total compensation awarded to a patient exceeds that amount, the PCF pays the remaining damages up to the statutory cap. This cost-sharing system is unique. It reduces the financial risk for individual providers. It also means patients can receive additional damages beyond the provider’s limit, but only up to the total legal cap.
Overview of the Indiana Medical Malpractice Act (IMMA)
The Indiana Medical Malpractice Act (IMMA) controls most malpractice lawsuits in the state. Indiana created the act to address rising insurance costs and concerns about physician availability. The IMMA sets specific rules for lawsuits. These include mandatory medical review panels, notice requirements and limits on attorney fees. The act also funds and manages the Patient’s Compensation Fund (PCF). The law attempts to balance patient access to courts with stability in the healthcare system. While the IMMA protects providers, it also creates a specific process for patients who are seeking compensation.
How the Cap Affects Injured Patients: Implications of Indiana Malpractice Limits
Indiana’s damage cap can severely limit the recovery for patients with life-altering injuries. These injuries, such as permanent disability or birth trauma, often require long-term care and assistive devices and result in large lost earnings.
If a patient’s actual damages exceed the cap, they may not receive full compensation for their future needs. The cap also influences settlement negotiations. Defendants know the maximum payout possible, regardless of the case details. This awareness can make litigation more predictable. However, it may prevent severely injured patients from receiving awards that reflect the full extent of their losses.
Is The Cap Likely To Change Or Be Challenged?
Indiana periodically reevaluates its malpractice cap. Recent increases show that policymakers recognize rising medical costs. Some advocacy groups argue that the cap should be raised further, or even eliminated, to help the most seriously injured patients.
Despite these arguments, courts have generally upheld the law. Still, medical costs continue to grow. Future legislative sessions may revisit the cap. While substantial changes are possible, the state has historically moved gradually. It attempts to balance patient rights with the concerns of providers and insurers.
Is it Time to Sunset the Damage Cap?
Given the need to raise limits over the past several years, many argue the system is no longer fair to victims. There is also concern it’s not enough of a deterrent to negligent doctors because it only requires them to pay such a relatively small percentage of the overall claim. Many victims worry the damage cap doesn’t reflect the severity of some cases and the subsequent costs of caring for severely injured parties. Some states have ruled damage caps unconstitutional, forcing those with caps in place to wonder what’s next.
Medical Malpractice Attorneys at Hovde Dassow + Deets, LLC
Medical malpractice claims can be extremely complex cases to take to court, and if you don’t have an experienced legal team, you could run into problems and delays. Finding an attorney you can trust with your case is imperative. Contact our Indianapolis medical malpractice attorneys to schedule a consultation to review the details of your case. Call 888-229-1778 or connect online using our contact form.