Malpractice reports The Kaiser Daily Health Policy Report features recent developments related to medical
malpractice in three states. Summaries appear below. Illinois: The Illinois Division of Insurance on Tuesday ordered ISMIE Mutual Insurance, which controls more than 60% of the state's market for medical malpractice insurance, to cut its premiums by 3.5% for the fiscal 2006-2007 policy year, the St. Louis Post-Dispatch reports. The order marks the first time regulators have employed a provision in a law enacted last year that gives state officials the authority to regulate the insurance industry more closely, the Post-Dispatch reports. The law also caps noneconomic damages in malpractice cases to $500,000 or $1 million when the plaintiff is suing a hospital. Harold Jensen, board chair for ISMIE, on Tuesday in a statement said the order for a 3.5% rate reduction was "arbitrary." He added, "This insurer will continue to determine rates based on loss experience because we will not jeopardize the company's financial viability." ISMIE is the insurance arm of the Illinois State Medical Society (Lamb, St. Louis Post-Dispatch, 3/14).

Kentucky: State Rep. Bob DeWeese (R) on Monday proposed a constitutional amendment that would create a review committee to judge the merit of medical malpractice lawsuits, increase restrictions on the statute of limitations for certain lawsuits and establish standards for expert witnesses who testify in court, the Owensboro Messenger-Inquirer reports (Covington, Owensboro Messenger-Inquirer, 3/14). DeWeese said he would add his plan as a "compromise" amendment to a malpractice bill (HB 700) by state Rep. Rob Wilkey (D), but Wilkey said he had not discussed the proposal with DeWeese (Biesk, AP/Lexington Herald-Leader, 3/14). Wilkey's proposal would screen malpractice lawsuits but would not call for a constitutional amendment. Democratic and Republican leaders disagree over the need for a constitutional amendment in order to establish a review committee. DeWeese's proposed amendment also would undo proposals in Wilkey's bill to create a state-run malpractice insurance carrier and prevent insurers from using investment setbacks to justify rate increases. DeWeese's amendment does not state who would serve as committee members on review panels, but DeWeese said the panels would include doctors, lawyers and court representatives. The Kentucky Medical Association supports the amendment, which would require approval from Kentucky voters. However, Wilkey said, "How can you possibly have a compromise when you haven't even talked to the bill sponsor?" (Howington, Louisville Courier-Journal, 3/14).

Nevada: A state law approved by voters in 2004 that caps noneconomic damages in medical malpractice cases at $350,000 has contributed to a reduction in the number of cases filed from an average of 330 per year to 160 in 2005, the Las Vegas Sun reports. However, most "insurance companies haven't significantly lowered their rates, fearing the courts will overturn the law," and many doctors "have seen either minor cuts in what were already high premiums or smaller annual increases," the Sun reports. Larry Matheis, executive director of the Nevada State Medical Association, said the law must survive a court challenge before physicians "see real premium decreases and a number of new carriers on the market." Some trial attorneys said they have been filing fewer lawsuits because the cap is too low to justify the cost of preparing a case (Ryan, Las Vegas Sun, 3/15).

"Reprinted with permission from http://www.kaisernetwork.org.  ¶ 8:28 AM