Statement by Kenneth J. Printen, M.D.
President, Illinois State Medical Society
Re: status of medical liability reform
July 21, 2004

When session resumes on Friday, we expect to see a counterproductive proposal brought forth by the Illinois Trial Lawyers’ Association (ITLA) that, if passed, will drive up liability insurance premiums and worsen the health care access crisis.

The ITLA proposal is a sham. It will encourage the settlement of frivolous lawsuits and thus increase physician liability premiums. The ITLA proposal will further deter liability insurers from doing business in this state, which will only aggravate the current crisis and increase physician exodus. The plaintiffs’ bar proposal will force physicians to leave their families’ financial security in the hands of the courts in a post- verdict hearing. While we have not seen the specifics of this proposal, we have been informed that the effective date of this legislation will be July 1, 2005, further proving that this proposal is nothing but a sham.

ISMS is submitting a bill containing true asset protection for physicians involved in litigation. Through our bill, doctors can gain asset protection if they carry $1 million in insurance coverage. Contrary to what the trial lawyers claim, our legislation will also protect the right of physicians to file bad faith claims against their insurer.

Since caps on non-economic damages were taken “off the table” at the onset of the negotiations, personal asset protection is the only viable option to keep doctors working in Illinois and attract new physicians to the state.

We know that 80 percent of the claims filed against a physician result in no payment to the plaintiff. If we are intimidated into settling these cases, we will only feed the litigation problem that has forced our state into this crisis. We will strongly oppose false reform!

www.isms.org

Please see the following memo to the Illinois General Assembly for more information.

MEMORANDUM

On behalf of the 14,000 physician members of the Illinois State Medical Society, we respectfully request that you oppose the Illinois Trial Lawyers’ Association’s (ITLA) harmful physician personal asset protection proposal.

The protection of physician personal assets is the key proposal left in the medical liability negotiations that would give Illinois physicians an incentive to remain in Illinois in spite of the current medical litigation crisis.

ITLA has proposed unproductive language that would:

• Encourage the settlement of non- meritorious claims thus increasing liability premiums
• Fail to guarantee asset protection by leaving it to the whim of the court in a post-verdict proceeding
• Deter liability insurers from returning to Illinois and force existing insurers to restrict their coverage even more

The Illinois State Medical Society has proposed reasonable and productive language that would:

• Require a physician to have a minimum of $1,000,000 in insurance coverage to qualify for asset protection
• Ensure asset protection in an amount equal to 2 times the physician’s insurance coverage
• Preserve physician bad faith claims against their insurers

In order for personal asset protection to persuade physicians to remain in Illinois they need to feel secure in the fact that their assets will be protected. ITLA’s language does not offer security, in fact, it makes a bad situation worse.

We urge your “NO” vote on ITLA’s personal asset proposal. Support the Illinois State Medical Society’s proposal to ensure immediate and meaningful litigation reform to protect access to health care for Illinois’ patients.

Twenty North Michigan Avenue, Suite 700 Chicago, Illinois 60602 Telephone: 312-782-1654 Toll Free: 800-782-ISMS Fax: 312-782-2028