For Release: Wednesday, July 27, 2005
Contact: David Gillies: 202-225-5661
Washington - U.S. Congressman Jerry Costello (D-IL) issued the following statement concerning the consideration of H.R. 5, legislation that would cap non-economic and punitive damage awards in medical malpractice cases:
"I have said many times that I believe that medical malpractice reform is an issue best handled at the state level. Twenty-nine states, including Illinois , have passed legislation addressing this issue. If Congress chooses to override the states, it should include a variety of viewpoints and must address the issue of insurance industry reform. Earlier this year, I voted for a bipartisan class action reform bill because it represented a consensus approach on how to address that problem. I have made it very clear before and since that time that any effort at the federal level regarding medical malpractice reform should follow a similar model.
"I will oppose H.R. 5 because it is a caps-only bill that does not address medical malpractice reform in a comprehensive manner. In addition, the Republican majority refused to allow any amendments to the bill. I offered an amendment to the Rules Committee that simply called for public hearings of any proposed medical malpractice insurance rate increase of greater than 15%. My amendment, like all Democratic amendments, was rejected and not allowed to be considered or voted on by the full House of Representatives.
"Insurance industry officials have been very clear: passing caps on non-economic damages will not result in reduced medical practice premiums. A recent study by the National Council of Insurance Commissioners revealed that medical malpractice carriers in Illinois raised their rates 13% last year, despite the fact that their direct losses increased 3%. Caps alone will not solve this problem. Insurance industry reform is necessary to bring the cost of medical malpractice premiums down, and must be a part of any effort in Congress to address this issue."
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