September 30, 2004

California dodges another bullet on its liability climate: "Gov. Arnold Schwarzenegger (R) has vetoed legislation sponsored by personal injury attorneys. ... The measure, SB 494 authored by Sen. Martha Escutia (D), would have given medical providers a direct right of action against insurers for the 'reasonable and necessary' costs incurred for medical treatment provided for an injury caused by a third party, when the injured person was a Medi-Cal recipient. ... 'This measure was touted as a way to help public hospitals that are struggling to keep up with rising costs and low reimbursements. In reality, SB 494 was a cash grab by personal injury attorneys looking to increase the amount of money they can sue for,' [Janine] Gibford [of the American Insurance Association] said." (Insurance Journal, Sept. 23).