Illinois med-mal ruling to boost insurers' costs 18%: study

Crain's Chicago Business reports:

Illinois’ medical-malpractice insurers face an 18% jump in costs following the state Supreme Court’s decision earlier this month to strike down a law limiting jury payouts, according to a study released Monday by Milliman Inc.

The consulting firm said the recent removal of caps on malpractice awards would lead to higher costs per malpractice claim, on average. The number of people suing their doctors also is likely to rise, the firm said.

“The magnitude of the estimated increase is largely a reflection of the tort environment in Illinois,” Chad Karls, a principal at Seattle-based Milliman, said in a statement. “In Illinois, claim severities have been among the highest in the country.”

The state Supreme Court’s Feb. 4 ruling struck down a 2005 law that capped jury awards for pain and suffering and other “non-economic” damages to $500,000 per case for physicians and $1 million for hospitals.

The Illinois Supreme Court seems unconcerned with higher insurer costs. For more on justice Anne Burke.