Tort Reform and Indiana Medical Malpractice Law
Since the recent Gulf oil spill there has been some discussion among the public and members of the US government about the $75,000,000 liability cap placed on oil companies for damages they cause due to deepwater spills. Congress is now re-examining the cap on such damages and trying to retroactively remove them or raise the limit to a mere $10 billion. This arbitrary cap previously enacted into law is an example of one aspect of what is commonly referred to as "tort reform". The term "tort reform" is placed in quotation marks to indicate that while it is the common term for such measures, the term itself is intentionally misleading. It was invented as a strategy to engender public support for legal measures which by their very nature reduce the rights of the members of the public for the benefit of various business interests.
Indiana has capped all damages caused by medical malpractice since 1975. Initially it was $100,00 per occurrence for the doctor and $400,000 from the Indiana Patient's Compensation Fund. That was subsequently raised to $100,000 and $650,000 and finally increased to $250,000 for the doctor and $1,000,000 from the PCF. A simple consumer price index for inflation over that period shows that in order to obtain the same value as the $500,000 total set in 1975 at today's value in dollars would require and increase up to over 2 million of today's dollars instead of 1.25 million. Further, to the extent the damages are intended to pay for future medical care, the amount should be increased even more since medical inflation is generally well over twice the rate of general consumer price inflation.
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