Illinois Democratic Gov. Rod Blagojevich signed a medical-malpractice reform measure today designed to limit liability awards and setting requirements for insurer rate hearings and disclosure.

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

Under the provisions of Senate Bill 475, there is limit on jury awards 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 malpractice cases, sets rules for annuity awards and provides that when doctors or hospitals offer an apology for a treatment outcome within 72 hours, the statement cannot be used against them in court.

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

Another provision provides that a regulatory hearing can be held when an insurance company increases its malpractice rates more than 6 percent with the burden on the company to prove its rates are not excessive, inadequate or discriminatory.

Companies that are found to be willful violators can be penalized.

The law also encourages discounts for insureds' participation in risk management activities and requires malpractice insurers to report loss, actuarial and reserve information and make it available to the public.

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

He said, "While the caps on non-economic damages are a welcome provision, additional liability reforms should be considered to provide more stability in the market and [to] offset the onerous insurance regulations that will do little to encourage insurers to re-enter Illinois.

Mr. Schneider predicted that despite the new law, the state's medical malpractice insurance market "will likely remain in a state of 'status quo' for some time because of the threat of judicial invalidation of the law and the normal marketplace adjustment period seen after a new law is enacted."

Special Reports /

Insurers Say New Illinois Med-Mal Law Insufficient

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