The Maryland General Assembly on Tuesday passed a new medical malpractice law despite Gov. Robert L. Ehrlich Jr.’s (R) veto of the measure last year.

The new legislation is designed to rein in doctors’ escalating medical malpractice insurance rates. Garnering just enough votes to fight an intense lobbying effort and to override the governor’s veto, the Democrat-supported bill provides immediate relief to Maryland doctors, who recently have faced double-digit increases in premiums, and includes initiatives that will limit the cost of malpractice litigation.

The new law creates a state fund to hold insurance rate increases to about 5% this year, compared with an average 33% increase faced by doctors covered by the state’s largest carrier.

Ehrlich had rejected the malpractice bill because he said it fell short of what he had wanted and because the legislation uses a tax on HMOs to pay for doctors’ relief from rising insurance premiums. In December, the governor had proposed medical liability reform legislation aimed at reducing the limit on “pain and suffering” awards, making physician apologies to patients inadmissible in court and cracking down on attorneys that file frivolous lawsuits.