Medical Malpractice Reform in Illinois

The Illinois General Assembly just adopted a Bill providing for medical malpractice reform in Illinois. The Governor is expected to sign the Bill. Its provisions will become effective upon signature by the Governor.

Some provisions of the Bill - e.g., those limiting non-economic damages - have received widespread publicity. Other provisions of the Bill, which have received much less publicity, will affect ongoing operations of medical malpractice liability insurers in Illinois. The bill imposes the following requirements on these insurers regarding their rates:

• A medical malpractice liability insurer's rates are subject to much greater regulation than under current law. In this line of business, Illinois has abandoned its usual approach of relying on competition to establish the rates of insurers.