Reform lowers rates
Crain’s Business Magazine
Letter to the Editor
March 27, 2006

Good news for physicians: the Illinois Division of Insurance ordered ISMIE Mutual Insurance Co. to lower doctors' malpractice insurance rates by 3.5% next year ("State orders malpractice insurer to lower rates," ChicagoBusiness.com, March 14). It's important to note that this reduction has nothing to do with caps on compensation imposed by the Legislature last spring. In fact, ISMIE has said the cap would not lower their rates in the near future. The rate reduction came at the behest of the Illinois Division of Insurance and was a product of insurance regulations enacted last year.

During last year's debate on medical liability reform, many people argued that the best way to curb malpractice insurance costs was to regulate insurance companies, rather than punish people who have been injured or lost loved ones because of medical errors. The steps made by the Division of Insurance to lower rates show insurance reform is an effective mechanism for keeping malpractice insurance costs down.

Mark Fraley
Illinois office
Center for Justice and Democracy
Chicago