FOR IMMEDIATE RELEASE:
May 11, 2005
FOR INFORMATION CONTACT:
Laurie Peacock
312-580-6497
(cell) 312-608-3620
ISMS and ISMIE Mutual to Support HB 4074; Will Strive to Make Key Improvements
Chicago, IL -- The Illinois State Medical Society and ISMIE Mutual Insurance Company today declared their joint support for HB 4074 as a means of addressing the medical litigation crisis in Illinois. The decision was announced today during the House Judiciary Committee’s hearing on the measure.
“We’ve made this decision in the hope that lawmakers will work with us to correct some substantial deficiencies in the current bill,” said ISMS president, Craig A. Backs, M.D. “At the same time, we deeply appreciate the willingness of House leaders to allow for consideration of a $250,000 cap on non-economic damage awards and other essential remedies for Illinois’ ailing lawsuit climate. We are taking a leap of faith that our elected officials, including the governor and the state’s high court, will keep intact the bill’s meaningful litigation reforms.”
ISMIE Mutual Chair Harold L. Jensen, M.D. acknowledged that, “Some elements of HB 4074 are very onerous. If uncorrected, they could further harm Illinois’ fragile network of physicians to care for patients, and discourage other insurers from returning to the state. We want to collaborate with the Assembly to address these shortfalls. While we understand the importance of compromise, we will stand firm on the absolute necessity of a strong, effective cap on non-economic damage awards.”
ISMS and ISMIE Mutual will back an amendment to improve and clarify the bill’s insurance regulatory component. It would authorize the state to convene a hearing at any time when an insurer files its rates. And it would mandate such a hearing when 10 percent of an insurer’s policyholders request one, or when an insurer proposes a rate increase over 15 percent.
“ISMIE is owned and operated by physicians, for physicians. We have no outside investors,” said Dr. Jensen. “We set rates based on our claims experience, our losses. In short, we are proud of our operational philosophy, market conduct, and track record of physician advocacy. Our regulatory amendment is fair, firm, and will be far more effective in bringing other insurers back to Illinois – an important goal of this legislation.”
“We want to move the process ahead,” said Dr. Backs. “ISMS and ISMIE Mutual’s support for HB 4074 is the first step toward doing so. We look forward to working with House lawmakers – as well as their Senate colleagues – to bring reform to reality. We support a strong bill that can become law – something Illinois desperately needs to compete with the favorable reforms in place in neighboring states. Keeping Doctors in Illinois – that’s our chief goal – and it means assuring that medical liability insurance is affordable and available.”
The Illinois State Medical Society is a professional medical association representing over 13,000 physicians practicing in all specialties statewide. Dr. Backs is an internist from Springfield, IL.
ISMIE Mutual Insurance Company is the leading provider of medical liability insurance to Illinois physicians. Established in 1976 by the Illinois State Medical Society, the company is completely physician-owned and operated. Dr. Jensen is an internist from the Chicago metropolitan area.