Montana committee hears testimony on bill to raise non‑economic malpractice cap from $250,000 to $500,000

Representative Bill Mercer of Billings opened the hearing on House Bill 195, urging the committee to update a non‑economic damages cap set in 1995 that currently limits awards for pain and suffering, emotional distress and related losses to $250,000.

"We think that coupled with an index of that factor to increase it by 2% on a go forward basis is a prudent change to this cap," Mercer said, summarizing the bill's structure.

Supporters representing physicians, hospitals and business groups told the committee the cap has not kept pace with inflation and that raising it and indexing it would stabilize the malpractice insurance market and help preserve health care access in rural Montana. Opponents, including trial lawyers and individual commenters, said caps deny full compensation to some injured people, disproportionately harm groups with little or no wage loss, and lack clear evidence that they improve access to care.

House Bill 195 would immediately increase the non‑economic cap from $250,000 to $300,000, then raise it by $50,000 increments until it reaches $500,000 on Jan. 1, 2029, with a 2% annual adjuster thereafter. The bill does not change compensable economic damages such as past and future medical expenses, lost earnings or costs to retrofit a home for disability; proponents and opponents agreed those categories remain…