FOR IMMEDIATE RELEASE:
August 25, 2005

FOR INFORMATION CONTACT:
Laurie Peacock
312-580-6497
(cell) 312-608-3620

At Long Last: Comprehensive Medical Litigation
Reforms Become Law!

Alton – In a major victory for Illinois citizens, Governor Rod Blagojevich today signed into law comprehensive reform legislation that will bring more balance and fairness to our state’s medical litigation system, and improve access to medical care services statewide. Illinois General Assembly lawmakers on both sides of the aisle worked together to pass Senate Bill 475 over the Memorial Day weekend, bringing to fruition a three-year legislative effort to repair Illinois’ broken litigation system.

“We look forward to the positive effects this legislation will have on access to health care services,” said Illinois State Medical Society President Craig A. Backs, M.D. “Every patient and physician in Illinois should be happy to know that positive change is on the way,” said Dr. Backs.

Chief provisions in the new law include:

• A $500,000 cap on non-economic damage awards. There will be no change in the payment of full, unlimited compensation for all of an injured patient’s economic damages;
  
  
• Elevated standards for experts certifying a lawsuit and testifying in court;
  
  
• Enhanced medical disciplinary standards for physicians;
  
  
• Internet posting of doctors’ professional credentials, disciplinary and medical litigation histories;
  
  
• Stepped up state regulation of medical liability insurers operating in Illinois.

“Illinois physicians and their patients worked very hard to bring awareness to our state’s crisis and the solutions needed to fix it,” said ISMIE Mutual Chair, Harold L. Jensen, M.D. “The caps provision enacted today has already brought relief to other states with similar problems. Along with the other reforms contained in this legislation, we believe this measure will bring greater stability and predictability to Illinois’ liability climate,” said Dr. Jensen.

“Under the new reform law, those injured by medical negligence will receive fair compensation for their losses, and will continue to receive justice,” said Dr. Backs. “Provisions such as the ‘average weekly wage’ will ensure that even those without a regular income will receive a fair, balanced damage award. This law will also curtail prolonged time extensions for case filing. Those injured by medical negligence will benefit from quicker resolution of their case,” added Dr. Backs. “Access to critical medical care services will improve as physicians see Illinois as a less hostile medical legal environment in which to provide care. This law strikes a much-needed balance between access to the courtroom and access to the medical exam room.”

While pleased with the majority of reforms passed today, ISMIE’s Dr. Jensen injected a strong dose of caution into an otherwise celebratory occasion. “In the spirit of compromise, we are swallowing hard several of the insurance regulations included in this law,” he said. “But we remain extremely concerned that this law’s oppressive regulatory scheme will dissuade insurers from re-entering the Illinois market. ISMIE will continue to work to provide liability insurance to Illinois physicians. We certainly hope that other insurers will find benefits to setting up shop in Illinois.”

“We are deeply grateful to Governor Blagojevich for signing this legislation into law, to Illinois Senate and House GOP leaders Frank Watson and Tom Cross for their strong, longstanding leadership, and to the many state legislators and leaders on both sides of the aisle who supported reform. These elected officials put the interests of patients above politics. Because of their efforts, Illinois will be a safer place to live,” concluded Dr. Backs.

www.realitymedicine.com

ISMS is a professional membership association representing over 14,000 physicians practicing in all medical specialties statewide. ISMIE Mutual Insurance Company is the largest insurer of medical liability for Illinois physicians. Since the company’s inception in 1976, it has been policyholder-owned and operated. Dr. Backs is an internal medicine specialist from Springfield, Illinois. Dr. Jensen is an internal medicine specialist from Frankfort, Illinois.

Highlights of SB 475, Comprehensive Medical Litigation Reform

Judicial Reforms

• $500,000 cap on non-economic damage awards for physicians and $1 million cap for hospitals. Firm cap, not indexed for inflation and no exceptions.
• Improvements to the affidavit of merit, requiring disclosure of consulting physician’s name, and that the physician be an expert in the area of medicine that is the subject of the lawsuit.
• Stronger standards for expert witnesses. Witnesses must be board certified or board eligible in the same specialty as the defendant. The expert must also devote a majority of time to the practice of medicine, teaching or research. Retired experts must be current with continuing medical education.
• Allow the use of annuities for the payment of portions of the award for medical costs.
• Good samaritan immunity extended to retired physicians providing free care and for free care provided in the home.
• Allow physicians to say “I’m sorry” or other expressions of grief and apology without the statement being used against them.

Medical Discipline

• Medical Disciplinary Board expanded from nine to eleven members. Four members must be members of the public.
• Doubles the number of IDFPR investigators.
• Extends the statute of limitations from five to ten years for IDFPR to investigate allegations of a pattern of practice.
• IDFPR disciplinary fine increased to $10,000 maximum.
• Good faith immunity for persons reporting to peer review committees alleged violations of Medical Practice Act.
• Internet profiling of physicians’ professional credentials, and disciplinary and medical litigation histories.

Insurance Regulation Reform

• More power for the Division of Insurance to call hearings to determine whether rates are excessive or inadequate. Hearings are to be held at the request of 1 percent of insureds within a specialty, or at the request of 25 insureds (whichever is greater). Department will call for a hearing when an increase is over 6 percent.
• Encourages insurers to offer policies with deductibles and premium discounts for risk management programs.
• Requires submission of claims statistics and other data to the DOI. All information will be made available to the public.

Will doctors’ insurance premiums go down, and if yes how soon?

Our reform law must pass constitutional muster before its effects can truly be measured. There is a stable of cases already in the litigation pipeline that will be unaffected by the new law. Despite these caveats, the signs for rate stabilization and/or decrease are promising! In dozens of other states, caps have brought a stable liability insurance market. Reforms (including a cap) enacted in Texas in 2003 spawned rate cuts by several liability insurers. New insurers entered the market there quickly, because the cap was fortified through previous passage of a state constitutional amendment.

Will people hurt in medical mishaps be limited to $500,000 in compensation?

The cap is on non-economic damages only. Compensation for economic damages (the injured person’s medical costs, lost wages and earning potential) remains unlimited by the reforms. This legislation also includes a provision entitling individuals without regular income to receive a calculated average weekly wage as a portion of economic damages. It allows for the purchase of annuities to cover up to 80% of future medical costs.

When does this law take effect?

This legislation takes effect when signed into law. Only those injuries occurring after the date of enactment will be subject to the new reforms.

Is a $500,000 cap low enough to make a difference?

ISMS and ISMIE stand by the efficacy of a $500K cap, and believe it will provide significant relief and predictability over the long term. While we worked actively for a lower, $250K cap, achieving this goal was simply not feasible in the hostile legislative climate we encountered in Springfield. Passage of any cap is extraordinary in light of the strong opposition of Illinois House and Senate leaders, and the well-funded, vituperative campaign mounted by trial attorneys and their consumerist front groups. Trial attorneys’ violent opposition to the cap should be enough to convince physicians of its strong potential benefits.