Illinois Democratic Gov. Rod Blagojevich signed amedical-malpractice reform measure today designed to limitliability awards and setting requirements for insurer rate hearingsand disclosure.

An insurers' trade group commended the governor and legislaturefor passing the measure, but said it did not go far enough.

Under the provisions of Senate Bill 475, there is limit on juryawards for non-economic "pain and suffering," which sets a cap of$1 million for hospitals and $500,000 for physicians.

The bill also sets standards for expert witnesses in malpracticecases, sets rules for annuity awards and provides that when doctorsor hospitals offer an apology for a treatment outcome within 72hours, the statement cannot be used against them in court.

It also increases the number of investigators for the StateMedical Disciplinary Board and doubles fines to $10,000 for MedicalPractice Act violations.

Another provision provides that a regulatory hearing can be heldwhen an insurance company increases its malpractice rates more than6 percent with the burden on the company to prove its rates are notexcessive, inadequate or discriminatory.

Companies that are found to be willful violators can bepenalized.

The law also encourages discounts for insureds' participation inrisk management activities and requires malpractice insurers toreport loss, actuarial and reserve information and make itavailable to the public.

Steve Schneider, American Insurance Association Vice President,Midwest Region reacted, saying that "more can be done to help keepdoctors in Illinois."

He said, "While the caps on non-economic damages are a welcomeprovision, additional liability reforms should be considered toprovide more stability in the market and [to] offset the onerousinsurance regulations that will do little to encourage insurers tore-enter Illinois.

Mr. Schneider predicted that despite the new law, the state'smedical malpractice insurance market "will likely remain in a stateof 'status quo' for some time because of the threat of judicialinvalidation of the law and the normal marketplace adjustmentperiod seen after a new law is enacted."