Maryland: Multiplier Method vs. Per Diem Method Compared

Two different ways to turn noneconomic damages into a dollar figure — and in Maryland, correctly identifying which of two cap schedules applies matters more than the method itself.

The multiplier method: scaling off your damages

The multiplier method is the industry's default approach. It takes your economic damages — medical bills and lost wages — and multiplies that total by a factor generally between 1.5 and 5, chosen based on injury severity, recovery time, and whether any permanent impairment is involved.

The per diem method: valuing each day

The per diem (Latin for "per day") method works differently. It assigns a specific dollar value to a single day of pain and suffering and multiplies that rate by the total number of days of documented recovery, tying the value directly to time rather than to the size of your medical bills.

Why Maryland makes the cap question more important than usual

In many states, one cap applies across the board. Maryland runs two genuinely separate schedules: the general noneconomic damages cap under § 11-108 for an ordinary personal injury or wrongful death case, and a lower cap under § 3-2A-09 specific to medical malpractice. The two schedules don't just start at different dollar amounts — they also increase on different anniversary dates (October 1 for the general cap, January 1 for the malpractice cap), so the applicable figure genuinely depends on both the type of claim and the exact date the cause of action arose.

Why getting the date and claim type right matters more than the formula

Because Maryland applies the cap in effect on the date the injury or death occurred, not the date a case is filed or settled, correctly identifying both the claim type and that specific date is what actually determines the applicable ceiling. Whichever valuation method you use to estimate noneconomic damages, that estimate is only useful once checked against the correct cap for the correct year.

Neither is required by Maryland law

Both methods remain negotiating tools, not a formula Maryland courts are required to apply. A jury retains discretion to award whatever amount it finds appropriate for noneconomic damages — subject to whichever cap applies, and without being told the cap even exists.

Multiplier vs. per diem — frequently asked questions

What is the multiplier method for valuing noneconomic damages?

It takes your economic damages — medical bills and lost wages — and multiplies that total by a factor, generally between 1.5 and 5, based on how severe and lasting the injury is.

What is the per diem method, and how does it differ?

The per diem method assigns a specific dollar value to each day you experience pain and suffering, then multiplies that daily rate by the number of days of recovery, rather than scaling off your economic damages.

Which cap applies to the output of either method in Maryland?

It depends on the type of claim. An ordinary personal injury or wrongful death case uses the general noneconomic damages cap, while a medical malpractice case uses a separate, lower cap that rises on a different yearly schedule.

Why does knowing the correct cap matter more than the valuation method here?

Because the two caps sit on different dollar tracks that grow at different anniversary dates, misidentifying which one applies to a claim can produce a meaningfully wrong estimate, regardless of how carefully the multiplier or per diem method was applied.

Is either method required by Maryland law?

No. Neither is a formula set by statute. Both are negotiating tools used by attorneys and insurance adjusters to reach a number for the jury or the settlement table, within whichever cap applies.

This page provides general guidance only and is not legal advice. Figures are based on the multiplier and per diem methods commonly used across the personal injury industry and Md. Code, Cts. & Jud. Proc. §§ 11-108, 3-2A-09, verified per our methodology. Confirm how these methods apply to a specific claim with a licensed Maryland attorney before acting.