SPRINGFIELD - The insurance industry came under fire Wednesday during a state House committee meeting when a witness suggested companies are misleading consumers about medical malpractice rate increases.

"The tragedy is that the doctor's insurance company is paying out less in claims but charging doctors more, and they're not telling the doctors the truth about that," said Jay Angoff, former director for the Missouri Department of Insurance.

The House Judiciary Committee heard testimony from witnesses who illustrated their ideas on how to reform medical malpractice. Several reform proposals have been introduced in both chambers; some include insurance regulation.

Angoff, an insurance lawyer, claims the state's largest malpractice insurer is misleading consumers about raising rates. He insinuated ISMIE Mutual Insurance Co. revenue is going up while the number of claims is going down.

According to the insurance company's 2003 annual report, it increased its base rate by 35.2 percent in May 2003 because of a 36 percent increase in liability cases and a 25 percent increase in payment per claim.

But Angoff claims the company's data is misleading consumers because its estimates are based on future pay-outs.

Dr. Harold Jensen, chairman of the company, says the company is nonprofit, putting what they make into reserves for future lawsuits.

"If there is so much profit in ISMIE, we have to then ask where is it," Jensen said.

The Illinois State Medical Society joined the company in claiming an increase in medical malpractice litigation is driving doctors out of the state. The two groups support initiatives to place caps on noneconomic damages, or pain and suffering.

"We're pushing hard for caps because although that doesn't take care of the whole problem, that at least stabilizes the premiums that the doctors are paying," Jensen said.

Blaming the litigation process for rising costs of medical malpractice insurance does not make sense because rates fluctuate every decade, Angoff said.

"You're never going to satisfy anybody because these crises come up every 10 to 15 years or so," Angoff said.

The House Judiciary Committee will meet again Tuesday.

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