Consumer Watchdog Inside Insight
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In This Edition
MICRA LAW REVAMPED - EXCLUSIVE VIDEO
SEE FILM DOCUMENTING MICRA FIGHT AT LA FILM FESTIVAL JUNE 10th
STATE REGULATORS OPEN INVESTIGATION INTO INSURANCE CAMPAIGN CONTRIBUTIONS TO RICARDO LARA
MEDICAL BOARD REFORM UNPRECEDENTED NEWSPAPER ENDORSEMENTS FOR INSURANCE COMMISSIONER CANDIDATE MARC LEVINE
MICRA LAW REVAMPED
EXCLUSIVE VIDEO
It’s official. The odious 1975 MICRA law is no more. In a ceremony in Sacramento, Gov. Gavin Newsom signed the revamped MICRA law (AB-35) that will correct nearly five decades of injustice for California victims and families harmed by medical malpractice. I first began fighting for MICRA reform 28-years ago when I met Scott Olsen and his then-two-year-old son Steven who was left permanently disabled by medical negligence. It has been a long journey, but we can now celebrate a positive result that many of us were afraid we would never see. We brought five survivors of medical malpractice to the ceremony, and it was emotional for all of us. Here is an exclusive video of the historic signing ceremony, which was closed to the media, so you can see Gavin Newsom’s comments on the deal. The new MICRA law will go into effect on January 1, 2023 and will:
Increase the cap to $500,000 for wrongful death cases and $350,000 for injury cases starting January 1st..Raise the cap in increments every year for ten years, until it reaches $1 million for wrongful death cases and $750,000 for injury cases in 2033.Allow for up to three separate caps in cases when multiple providers and institutions are responsible. Starting next year, the maximum cap could be $1.5 million for wrongful death cases, and $1.05 million for injury cases. By 2033 it will be a maximum $3 million for wrongful death and $2.25 million for injury cases.Increase the cap by 2% every year starting in 2034.Raise the contingency fee and base it upon whether the recovery is a settlement or a judgment.I am confident that more trial attorneys will now be able to litigate these expensive and challenging cases and not turn away these victims because of the prohibitive costs involved.
SEE FILM DOCUMENTING MICRA FIGHT AT LA FILM FESTIVAL JUNE 10th
Part of the successful strategy to increase the MICRA limits was the making of a documentary film that showed the damage to families and the politics that led to the cap being kept in place for 47 years. The film was executive produced by Nick Rowley. We are excited to announce that the film, MAKING A KILLING, will be premiering at the largest Los Angeles indie festival, Dances With Films, at the Chinese Mann Cineplex Theater (upstairs in the Hollywood/Highland complex) on Friday, June 10th at 7PM! You can watch the trailer here and buy tickets for the screening on June 10th here. The film features survivors Annette Ramirez, Charles Johnson and Scott and Steven Olsen. It has remarkable revelations of remorse by former MICRA author Barry Keene.
STATE REGULATORS OPEN INVESTIGATION INTO INSURANCE CAMPAIGN CONTRIBUTIONS TO RICARDO LARA
A complaint filed by Consumer Watchdog has resulted in the Enforcement Division of the Fair Political Practices Commission (FPPC) announcing they will begin an investigation into the funneling of illegal campaign contributions made by the insurance industry to Insurance Commissioner Ricardo Lara’s re-election campaign. The complaint alleges that contributions to Lara from seven insurance companies did not disclose the source of the donations, violating state prohibitions against money laundering and disclosure of earmarked contributions. Read the complaint and a news article on the case.
MEDICAL BOARD REFORM
A long-sought bill to reform the California Medical Board by giving public members the majority vote on the Board will not happen in 2022. The Medical Board holds negligent doctors accountable for their actions. The bill got out of committee but died on the Assembly floor where it didn’t get a vote because of last-minute opposition from the California Medical Association who made defeating the bill a priority. This was disappointing news, but not unexpected. Consumer Watchdog will continue to work to reform the Medical Board, an important action that must be taken to hold negligent doctors accountable.
UNPRECEDENTED NEWSPAPER ENDORSEMENTS FOR INSURANCE COMMISSIONER CANDIDATE MARC LEVINE
With the San Diego Union Tribune and Fresno Bee joining the L.A. Times, Sacramento Bee, San Jose Mercury News and San Francisco Chronicle, Assembly member Marc Levine has received an unprecedented endorsement clean sweep of every major California newspaper editorial board. I can never remember a challenger for statewide office receiving the endorsements of every major state newspaper. The race between Levine and Lara is on next week’s Primary Election ballot and the top-two vote-getters will move on to the General Election in November. Remember, Insurance Commissioner is the most critical office in Sacramento for trial lawyers. He is the one who sets insurance rates. Here are some direct excerpts from the newspaper endorsement-editorials for Levine:
L.A. TIMES (April 28, 2022) “Ricardo Lara’s first year as California insurance commissioner — the elected office charged with regulating the state’s $310-billion insurance industry — was an ethical disaster. In March 2019, Lara, a Democrat, held a lunch meeting with insurance company executives who had business pending before his department, for the purpose, records showed, of building a relationship that would benefit his reelection campaign. In April, he accepted more than $50,000 in campaign donations from insurance industry representatives and their spouses, including from people with ties to the company at the lunch meeting the month before. In June, Lara overruled decisions his department had previously made in ways that benefited the company. None of this is illegal. But it looks horrible for someone whose job is to protect consumers from being overcharged by insurance companies. Insurance commissioners have enormous power to impact the industry by approving or rejecting rate increases and investigating insurance fraud. To avoid the perception that money can buy favorable treatment, most of California’s past insurance commissioners have shunned campaign donations from the industry. Lara, too, pledged not to take insurance money when he ran in 2018. After news broke that he’d taken the donations, Lara apologized and returned the money. But Lara has also had other ethical lapses during a dozen years in public office, creating a troubling pattern. Levine stands out from the pack as the candidate who will best look out for consumers and the planet.”
SAN DIEGO UNION TRIBUNE (MAY 27, 2022) “For insurance commissioner, we endorse San Rafael Assemblymember Marc Levine over fellow Democrat Ricardo Lara, the incumbent. Lara is likely to be one of two candidates to make the Nov. 8 runoff election, but he shouldn’t be re-elected. He doesn’t deserve a new term. Scandal has dogged him from his days in the Legislature, and he’s only become more synonymous with it while serving in a role requiring ethical stewardship to ensure insurance companies treat all Californians fairly. That role gets trickier all the time with the climate emergency meaning more wildfires threatening homes.”
SAN FRANCISCO CHRONICLE (May 1, 2022) “Levine is running on a platform of good governance…he has vowed to mandate more transparency regarding insurance company fossil fuel investments. Lara’s got to go. Levine deserves your vote. We enthusiastically endorse his candidacy.”
SAN JOSE MERCURY NEWS (April 28, 2022) “California needs consumer protection, not partying, dining, and cozying up with industry lobbyists and executives. California needs a new insurance commissioner—one that voters can feel confident represents their interests. Voters in the June 7 primary should back Assemblyman Marc Levine to head the department of 1,400 employees responsible for overseeing health, auto and homeowner insurance rates—for regulating companies that collect premiums annually in California. What the state needs is an insurance commissioner willing to campaign and willing to work hard to protect consumers and ensure healthy industry competition and solvency. Levine is the only candidate who meets those criteria. Californians should back him in the June 7 election.
I want to remind you that Consumer Watchdog does not endorse candidates for office, but we continue to hold the elected insurance commissioner accountable to the public and its ethical expectations. --Jamie
