Med-mal caps declared unconstitutional

Here is some more information about the med-mal caps decision in Illinois:

In 2005 limits on compensation, or "caps", for victims of medical malpractice were passed in Illinois because the voice of victims couldn't match the money and power of big insurance and the medical lobby.  This legislation capped non-economic damages at $500,000 for doctors and $1 million for hospitals.

Tuesday, Cook County Circuit Court Judge Diane Joan Larsen ruled that the caps legislation is unconstitutional because it violates the Illinois Constitution's separation of powers clause.  Basically, the legislation gave power to the legislature that belongs with the judiciary - the power to award or reduce damages. 

The law let legislators put an arbitrary limit on compensation, regardless of the facts of the case, the severity of the injury, or the carelessness of the doctor and/or hospital.  It took away the ability of the judge and jury, who hear hours of facts and testimony, to award damages they deem appropriate for that specific case.

In the caps legislation are also provisions for insurance reform.  Because of the non-severability clause within this legislation, if caps are struck down, so are the insurance reforms.  The judge cannot pick and choose the parts of the law that violate the state constitution.  The insurance reforms allowed the state to conduct more oversight of insurance companies and required public disclosure of rate information.  These reforms led to more competition in the insurance industry in Illinois and the ability of the Department of Insurance to deny companies' rate hike requests.

The defendants will appeal this decision; and since it involves a constitutional question, they are able to appeal it straight to the Illinois high court.  The Illinois Supreme Court has struck down similar legislation that put a cap on damages twice before. 

We hope the high court continues with its precedent and upholds the decision.