Illinois Medical Malpractice Claims and Payouts Stable, Contrary to Insurance Company Claims
In 2005, Illinois enacted a law that was just struck down which placed a $500,000 cap on non-economic damages recoverable by patients against doctors and a $1,000,000 cap in cases against hospitals in medical malpractice cases. Although the caps were recently overturned by the Illinois Supreme Court, proponents of the caps argued that malpractice claims and verdicts have been rising rapidly, driving doctors out of Illinois and raising health care costs. However, insurance company data prove these assertions to be false.
Although an increased numbers of medical malpractice claims have been reported, this increase is not due to an increase in filing of cases but due to a change in how the claims are accounted. Before 2003, ISMIE, Illinois’ largest medical malpractice insurer, counted a claim involving an insured doctor and medical corporation as one claim. However, in 2003, the reporting system was altered and the doctor and corporation claim was counted as two separate claims. Consequently, this change greatly increased the number of total medical malpractice claims. Thus, in 2005, in hearings before the General Assembly regarding payout caps, ISMIE overstated its expectations of future payouts. Once the cap passed, the insurance company lowered their expected numbers again.
Court records have shown that the annual filings of malpractice lawsuits in Illinois have steadily decreased both before and after the damage caps laws were passed in 2005. The regulatory filings of the insurance companies show that since 2000, the frequency and severity of malpractice claims and payouts have been stable, or decreasing. Meanwhile, insurance companies have enjoyed record profits, with malpractice insurance rates dramatically rising. In addition, insurance companies admitted that business conditions and diminished returns due to the state of the market were responsible for the rise in insurance rates, not malpractice lawsuits.
Since the current caps have been overturned, families and individuals whose lives have been greatly impacted by medical malpractice can claim appropriate amounts for injuries sustained. While the caps may seem high, malpractice cases such as Lebron v Gottlieb Hospital, which prompted the Illinois Supreme Court’s action to overturn the caps, show that families are burdened with expenses stemming from medical malpractice for the rest of their lives.