As California seeks to pass new legislation that would increase the amount victims can recover for pain and suffering in medical malpractice lawsuits, a new study shows that setting damage caps for pain and suffering reduces the incentive to avoid malpractice, and results in an increased rate of malpractice lawsuits. And, an increased rate of malpractice claims ultimately raises the potential cost to patients and insurers, along with noneconomic losses suffered by victims.
In other words, caps in malpractice lawsuits do not have any of the effects proponents of caps always argue they will have. They do not result in deterrence, may result in higher costs, and do not prevent higher insurance premiums.
You can read more about the study here.