Senate Week in Review: Feb. 1-5
SPRINGFIELD — The Illinois Supreme Court ruled this week that capping jury awards for non-economic damages is unconstitutional.
State Sen. Dale Risinger (R-Peoria) said the ruling could drive up healthcare costs and is a serious threat to doctors and hospitals, whose liability insurance rates have remained steady or even decreased since the cap on non-economic damages went into effect in 2005.
A bipartisan coalition of lawmakers approved the Illinois Medical Malpractice Act in 2005, despite strong objections from the Illinois trial lawyer lobby. When the reform legislation was signed into law it was considered a major victory for doctors and Illinois citizens, many of whom were finding it increasingly difficult to access medical treatment, especially obstetrics and cutting-edge procedures and medical treatments.
The state’s high court ruling upheld a previous Cook County Circuit Court decision, which found that Illinois’ Medical Malpractice Act violated the state Constitution by impeding a jury’s right to establish reasonable damages.
Senate Republicans were strong supporters of medical malpractice reform, arguing that many doctors were buckling under the weight of skyrocketing insurance rates that were the result of frivolous lawsuits and runaway jury verdicts.
The 2005 law only capped damages that have no dollar value, such as loss of companionship, pain and suffering, etc. The law did not place limits on damages that result in financial costs to the injured party, such as loss of wages or medical expenses.
The non-economic damages were limited because juries often award exorbitant amounts to plaintiffs based on emotion rather than the facts of the case. Because these awards can be unpredictable, insurance companies have no way to determine what the premiums should be and are compelled to charge the doctors for the highest possible risk — which drives up the cost of healthcare for everyone.
The state’s skyrocketing medical malpractice rates forced many physicians and specialists to flee Illinois, particularly in areas bordering other states and the Chicago metropolitan region, because rates in neighboring states were much more reasonable. As a result, some Illinois residents had limited or no access to much-needed medical care.
Also this week, the following legislation was signed into law:
Correctional Industries (HB 1994): Requires State agencies to purchase goods from Correctional Industries.
Preneed Funerals (SB 1682): Changes provisions relating to trusts established pursuant to the pre-need funeral and cemetery contracts.
Student Loans (SB 1698): Creates the Task Force on Higher Education Private Student Loans to investigate the relationship between rising tuition and the availability of private loans.
