SPRINGFIELD - Medical malpractice reform legislation pending in the state House would charge a $50,000 fine on government officials who disclose insurance data companies deem "trade secrets."

"It's absolutely insulting," said state Sen. John Cullerton, D-Chicago, who is sponsoring competing legislation regarding malpractice reform. He believes posing this fine could result in reduced competition.

Senate Bill 150 and House Bill 705 also would increase the penalty for gross negligence of doctors by $5,000, making it $10,000.

"It cost five times as much to give information to insurance companies than if you kill or severely harm someone," said Keith Hebeisen, president-elect of the Illinois Trial Lawyers Association.

Criticism of the state's largest insurance company ISMIE Mutual has grown over the past few weeks, as the House and Senate judiciary committees hear testimony.

ISMIE is required by law to hire an actuary to analyze its data. However, it is not obligated to hand the information to the state's Division of Insurance, nor is it open to the public.

This information includes specific data regarding how ISMIE determines its rates for each county in Illinois.

ISMIE officials claim they already offer adequate data to allow for competition, but it is the rising cost of malpractice settlements that is driving insurance companies out of the state.

An e-mail from ISMIE stated: "ISMIE expects reasonable assurance in return that our carefully developed market information won't be misused for political gain, or to manipulate the insurance marketplace to injure our company. That is the reason for the $50,000 penalty - a small levy in comparison to the potential harm to ISMIE and our policyholders were it to be released."

Deirdre Manna, acting director of the Illinois Division of Insurance, testified in a House judiciary hearing last week that insurance rate hikes cannot be regarded as excessive unless the market is determined noncompetitive, which it currently is not.

There are four other companies writing medical malpractice insurance in Illinois, but Manna said others would be interested in the state if ISMIE would disclose how it determines rates.

"They (insurance companies) think it would help them either verify or establish their rates," Manna said. "We think releasing it (data) does add transparency to the process."

Shelby Sebens can be reached at shelby.sebens@;lee.net or 789-0865.