§ 5/2-1704.5 Guaranteed payment of future medical expenses and costs of life care
§ 2-1704.5. Guaranteed payment of future medical expenses and costs of life care.
(a) At any time, but no later than 5 days after a verdict in the plaintiff's favor for a plaintiff's future medical expenses and costs of life care is reached, either party in a medical malpractice action may elect, or the court may enter an order, to have the payment of the plaintiff's future medical expenses and costs of life care made under this Section.
(b) In all cases in which a defendant in a medical malpractice action is found liable for the plaintiff's future medical expenses and costs of care, the trier of fact shall make the following findings based on evidence presented at trial:
(1) the present cash value of the plaintiff's future medical expenses and costs of life care;
(2) the current year annual cost of the plaintiff's future medical expenses and costs of life care; and
(3) the annual composite rate of inflation that should be applied to the costs specified in item (2).
Based upon evidence presented at trial, the trier of fact may also vary the amount of future costs under this Section from year to year to account for different annual expenditures, including the immediate medical and life care needs of the plaintiff. The jury shall not be informed of an election to pay for future medical expenses and costs of life care by purchasing an annuity.
(c) When an election is made to pay for future medical expenses and costs of life care by purchasing an annuity, the court shall enter a judgment ordering that the defendant pay the plaintiff an amount equal to 20% of the present cash value of future medical expenses and cost of life care determined under subsection (b)(1) of this Section and ordering that the remaining future expenses and costs be paid by the purchase of an annuity by or on behalf of the defendant from a company that has itself, or is irrevocably supported financially by a company that has, at least 2 of the following 4 ratings: “A+ X” or higher from A.M. Best Company; “AA-” or higher from Standard & Poor's; “Aa3” or higher from Moody's; and “AA-” or higher from Fitch. The annuity must guarantee that the plaintiff will receive annual payments equal to 80% of the amount determined in subsection (b)(2) inflated by the rate determined in subsection (b)(3) for the life of the plaintiff.
(d) If the company providing the annuity becomes unable to pay amounts required by the annuity, the defendant shall secure a replacement annuity for the remainder of the plaintiff's life from a company that satisfies the requirements of subsection (c).
(e) A plaintiff receiving future payments by means of an annuity under this Section may seek leave of court to assign or otherwise transfer the right to receive such payments in exchange for a negotiated lump sum value of the remaining future payments or any portion of the remaining future payments under the annuity to address an unanticipated financial hardship under such terms as approved by the court.
(f) This Section applies to all causes of action accruing on or after the effective date of this amendatory Act of the 94th General Assembly.
VALIDITY
P.A. 94-677, effective August 25, 2005, a comprehensive revision of the law relating to health care and medical
malpractice actions, is unconstitutional in its entirety because (i) provisions limiting the recovery of damages for
non-economic losses in medical malpractice actions violate the separation of powers principle of the Illinois Constitution (ILCON Art. II, Sec. 1) and (ii) other provisions are inseverable. Lebron v. Gottlieb Memorial Hospital, 237 Ill.2d 217 (2010).