Linda N. Weller, The Telegraph
October 14, 2006
ALTON -- Gov. Rod Blagojevich returned Friday to Alton to announce -- and celebrate -- legislation he signed here last year that he said soon would result in drastic cuts in malpractice insurance premiums for Illinois doctors. That reduction should entice physicians to locate or stay in Illinois, a host of legislators and health care representatives said during a 30-minute news conference at Saint Anthony’s Hospital.
Blagojevich announced that Medical Protective (Medpro), a Berkshire Hathaway company based in Fort Wayne, Ind., is reducing rates for medical malpractice liability insurance nearly 39 percent in the Metro East and Chicago areas.
Statewide, the rates will go down 32 percent for policies issued on or after Jan. 1, he said. The company also plans to write more policies in Illinois. Officials said they expect other companies to follow Medpro’s lead and reduce premiums, a change from the lack of competitive rates for malpractice liability coverage.
"I signed the medical malpractice reform law to keep doctors in our state and make health care more accessible and more affordable," Blagojevich said. "Just one year later, we are seeing dramatic results. New competition in the malpractice insurance market is resulting in lower premium rates, and it’s making Illinois a state where doctors want to practice."
Blagojevich signed the medical malpractice liability reform bill at Saint Anthony’s last year. One of its provisions changed underwriting practices to publish rate data from industry peers.
"Today is a big deal," Blagojevich said. "The law has changed the climate in our state so much that we can get a great company like Medpro to come into our state. It will drive down the premiums of medical malpractice insurance. We have a much better place in Illinois than four years ago. It is better for the doctors and hospitals. We are not where we want to be, but we’re making progress.
"Doctors, nurses, other health care providers and hospitals feel Illinois is a state where they can do healing, practice medicine and welcome others to come to the state," he said.
Blagojevich said the state now is rated first in providing health care for working families.
"Four years ago, 460,000 men, women and children didn’t have health care that have it today," he said, crediting the programs he initiated. He said the Golden Rule doesn’t allow for public officials to have affordable health care when others don’t have that access.
The 2005 Medical Malpractice Act, along with an administrative order issued by the Illinois Division of Insurance regulators last March, required ISMIE Mutual Insurance Co. to publicly file rate-related information, loss and claims-related data, making it available to health care providers and underwriters.
That information can allow other insurance companies to set competitive premium rates, he said. Mark Wittel of Palatine, Ill., a Medpro vice president, said Illinois had disproportionate amounts of claims and the environment was unpredictable but that the information now available will allow the company to offer lower premiums.
"We have the resources to defend claims and the resources to pay deserving claims," Wittel said. "The recent legislation will improve competition."
Mike McGraith, state insurance director, said Blagojevich only would sign the bill if it contained "meaningful insurance reform." He said there have been six filings from insurers this year, offering decreased premiums of 5.2 percent to more than 30 percent.
Bills leading to the Medical Malpractice Act originated with legislators in Southwestern Illinois, which saw an exodus of physicians, many because of high insurance premiums.
"When we passed that law, it was controversial," state Rep. Dan Beiser, D-Alton, said. "It was comprehensive, it had caps and provided insurance references. It was met with skepticism: Would it work? It is now working, and the skepticism should be going away."
State Sen. William Haine, D-Alton, called the medical malpractice bill process "hard-fought."
"The arguments against it were not unreasonable," Haine said. "Being Americans, that’s where we settle these differences, in the halls of the legislature. Gov. Blagojevich made a tough decision when he came to Saint Anthony’s to sign it over opposition. He realized health care services in this part of Illinois and in other areas was near collapse."
State Rep. Tom Holbrook, D-Belleville, favorably compared the 2006 situation to that of 2004.
"Go back with me two years ago," he said. "Doctors were leaving, health care was in crisis, and insurance rates were skyrocketing. This didn’t happen overnight. This is one domino that has fallen into place."
Mark Weber, president and chief executive officer of Saint Anthony’s, called the announcement "great news."
"We were not sure how long it would take to feel its effects," he said about the malpractice reform law. He said one physician at Saint Anthony’s has seen his premiums fall from $205,000 per year to $80,000, without the Medpro aspect.
Weber said the Alton area lost more than 40 physicians in recent years.
"We’re recruiting, we’re rebounding," he said.
Dr. Steve Zenker, a pediatrician and chief of staff at Saint Anthony’s, called the news "the light at the end of the tunnel compared to two years ago."
Already, he said the insurance rates are going down at the Alton MultiSpecialists physicians group.
"I’d like to publicly thank the people in our area for listening to us (physicians); it was a true grass-roots campaign," Zenker said. "Without you, they would not have listened."
The new law also enables legislators to hold public meetings to determine whether rate filings are justified and to deny, adjust or limit the rates.
home | about us | the facts | federal reform efforts | data and resources | press room | contact us | search site