Vested Interest - May 2004 Issue

The President’s Thoughts

My year-long tenure as President of ITLA began last June when our organization knew that the enemies to our civil justice system would marshal their forces in an attempt to restrict the rights of injured victims nationwide by passing federal legislation concerning medical malpractice, asbestos litigation, and class action cases. Those predictions proved accurate as measure after measure has been advanced by the wrongdoers’ protection lobby of the American Medical Association, U.S. Chamber of Commerce, and affiliated interest groups supported by the insurance industry. ATLA once again rose to the challenge in helping defeat this mean-spirited legislation.

What wasn’t as clear was how the medical malpractice liability insurance problem would develop here in Illinois. As it turned out, this issue consumed much of the organization’s efforts over the last year as ITLA sought to preserve the rights of Illinois citizens and uncover the truth behind this reoccurring problem. We responded in an aggressive fashion by hiring a well-respected and nationally-known insurance industry expert, Jay Angoff, to analyze the reasons behind the recent escalation of medical malpractice insurance premiums and to inform state legislators about the reasons behind the "crisis."

As we believed all along, the reality is that ISMIE and other insurance companies made poor business decisions in the late 1990’s which resulted in unwarranted premium increases, followed by a pre-planned marketing strategy to blame injured victims and the civil justice system for the rate increases. After a thorough investigation of ISMIE’s actuarial data and annual reports, ITLA provided a detailed brief to Illinois legislators, Governor Blagojevich, and the media, citing the reasons behind the crisis and offering legislative suggestions for addressing the reoccurring problem.

There is a chance that by the time you read this article, legislation will have been passed reforming the Illinois Department of Insurance, toughening the Department of Professional Regulation, and modifying the Medical Malpractice Act, in the form of an omnibus bill that will be signed by Governor Blagojevich. (Watch your mail for Legislative Bulletins.) These true reforms will force transparency and accountability in the malpractice insurance rate setting process for the first time in nearly 35 years, while at the same time increasing competition among insurance companies in Illinois. Long overdue reforms at the Department of Professional Regulation will address the root cause of medical malpractice - bad doctors. Modifications to the Medical Malpractice Act, including Rule 2-622, should minimize frivolous lawsuits, while at the same time protecting the substantive rights of all our clients.

The final legislative product is not yet known, but as the end of the Spring session draws near, we should know soon whether our efforts to solve this problem will be fruitful. I am very grateful to Jim Collins and the entire staff at the Illinois Trial Lawyers Association for their efforts during this most challenging year. Without their hard work and continued dedication to our organization, our success would be impossible.

Michael P. Schostok, President
Illinois Trial Lawyers Association