NU Online News Service, May 31, 1:50 p.m. EDT--Both chambers of the Illinois Legislature approved a medical malpractice reform package yesterday that includes caps on non-economic damages for pain and suffering.
The Senate approved the measure late last night while the House approved it earlier on the Memorial Day holiday.
Steve Schneider, vice president, American Insurance Association, praised the lawmakers for approving the caps, but said that certain anti-competitive measures in the legislation sent the wrong message to companies seeking to write business in the state.
Mr. Schneider said he expects court challenges to the caps to come immediately from the plaintiff's bar. The Illinois Supreme Court has struck them down in the past.
The legislation includes caps on non-economic damages of $500,000 for doctors and $1 million for hospitals.
Approval for the measure came after a compromise by Democratic leaders in the House and Senate on the caps they have historically. Democratic Gov. Rod Blagojevich said he will sign the legislation.
On the minus side for the insurance industry, Mr. Schneider said, was the fact that the legislation includes increased doctor scrutiny with disciplinary actions posted on the Internet.
In addition, the bill provides new authority for the Division of Insurance to require a public hearing when a rate increases 6 percent from the previous year, or if 1 percent of those insured by a specialty demand a hearing. Insurers will also be required to provide their actuarial data, which can then be released publicly.
Keith Hebeisen, president-elect of the Illinois Trial Lawyers Association, said he opposed the bill. "We don't need caps. They just punish people," he said.
He said he favored that portion of the bill that allows the department to call rate hearings and other transparency measures.
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