Groups differ over reason for malpractice dividends
<p style="margin: 0in 0in 0pt;" class="BODY">The state's largest medical malpractice insurer announced this week it plans to return more than $11 million to the physicians it insures. But, as usual, the medical and trial-lawyer industries differed over the reasons for the windfall.
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<p style="margin: 0in 0in 0pt;" class="BODY">"Illinois' improving legal landscape made these dividends possible," Dr. Harold Jensen, chair of the Illinois State Medical Insurance Exchange board, said in a written statement. "ISMIE's claim frequency is down for the two policy years the dividends reflect, so those funds are now available to return to our loyal physician policyholders."
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<p style="margin: 0in 0in 0pt;" class="BODY">ISMIE was founded in 1976 by the Illinois State Medical Society to provide malpractice insurance.
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<p style="margin: 0in 0in 0pt;" class="BODY">Changes Illinois lawmakers made in 2005 to the state's medical malpractice laws placed a $500,000 cap on non-economic damages paid by doctors when they are found liable in malpractice cases. Similarly, the law created a $1 million cap for hospitals. An injured patient's economic damages - for medical care, lost wages and other costs - still are to be paid in full.
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<p style="margin: 0in 0in 0pt;" class="BODY">"There's no magic or mystery about it," Jensen said in announcing the dividends. "The reforms are working here, just as they've been proven effective in a host of other states."
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<p style="margin: 0in 0in 0pt;" class="BODY">Advocates of the limits say they are needed to keep malpractice insurance rates affordable and to keep doctors and hospitals in business.
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<p style="margin: 0in 0in 0pt;" class="BODY">However, Bruce Kohen, president of the Illinois Trial Lawyers Association, which fought the caps, said the ISMIE dividends are a result of other parts of the malpractice insurance reforms.
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<p style="margin: 0in 0in 0pt;" class="BODY">The law also gave state regulators more authority to review malpractice insurance rates, a provision that was used to create the dividend requirement, Kohen said.
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<p style="margin: 0in 0in 0pt;" class="BODY">"While the Illinois State Medical Insurance Exchange seems to pat itself on the back for these dividend refunds, they mention nothing about the fact that they are doing it because the state Department of Insurance ordered them to do so," Kohen said.
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<p style="margin: 0in 0in 0pt;" class="BODY">Michael McRaith, director of the Illinois Department of Financial and Professional Regulation's Division of Insurance, said state regulators expect ISMIE to continue to pay dividends.
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<p style="margin: 0in 0in 0pt;" class="BODY">"ISMIE is acting responsibly in returning excess premiums to its policyholders," McRaith said.
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<p style="margin: 0in 0in 0pt;" class="BODY">According to the ISMIE news release, the dividends will be paid as credits when physicians renew their policies. The amounts could range from approximately $574 for a family practitioner in Sangamon County to $1,004 for an internist in Cook County.
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<p style="margin: 0in 0in 0pt;" class="BODY">Meagan Sexton can be reached at (217) 782-6882.
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<p style="margin: 0in 0in 0pt;" class="BODY">Lawsuit update
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<p style="margin: 0in 0in 0pt;" class="BODY">The constitutionality of the 2005 changes in Illinois medical malpractice law, including caps on non-economic damages such as for pain and suffering, are the subject of a lawsuit now before the Illinois Supreme Court.
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<p style="margin: 0in 0in 0pt;" class="BODY">"Our gains could be short-lived unless the court affirms the law," Dr. Harold Jensen, chair of the Illinois State Medical Insurance Exchange, said. "It would be a severe blow for physicians - but more importantly for patient access to medical care services in Illinois.
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<p style="margin: 0in 0in 0pt;" class="BODY">"Let's hope that justice truly prevails."
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<p style="margin: 0in 0in 0pt;" class="BODY">Bruce Kohen, president of the anti-cap Illinois Trial Lawyers Association, accused the ISMIE of engaging in "a propaganda campaign ... whose purpose is to influence the Illinois Supreme Court with the case that is in front of it on the constitutionality of the caps law."
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<p style="margin: 0in 0in 0pt;" class="BODY">Kohen said the case involves the delivery of a baby who was born with brain damage because of alleged negligence by the hospital and doctors.
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<p style="margin: 0in 0in 0pt;" class="BODY">He said the parties haven't filed briefs, and the Supreme Court won't look at the case until the fall at the earliest.