With the increasing monetary awards being given in the legal system, the costs for doctors and medical malpractice insurance California companies is rising to difficult levels. Medical malpractice insurance California companies base their premiums off the number of people in a group of policy holders, the costs accrued the previous year, and forecast costs for the upcoming year. In order to be able to handle the rising monetary awards, the premiums for these services have also gone up exponentially which directly affects the profitability of the insurance companies as well as the ability for doctors to afford the services.
Unlike other forms of umbrella or life insurance, medical malpractice insurance California is a requirement which doctors have to have in order to practice. There have been cases of clinics saying they stopped offering certain types of services or closed altogether because the costs were getting too high to handle. These types of trends are alarming due to the necessity of having good medical services available to the public, so there have been many suggestions for reform, which have been met with equal amounts of argument. The most prominent suggestion is to place a cap on the amount of money that can be awarded in a single case, but even this is subject to heated debate.