By Liz Sidoti
The Associated Press

COLUMBUS - Damages in medical malpractice cases would be paid for in part from a compensation fund, under a House-passed bill that also caps pain-and-suffering awards for injured patients.

The bill, passed 64-33 by the House with two members not voting Tuesday, would order the Ohio Department of Insurance to recommend by March 1 how to create a compensation fund to reduce the amount of money insurance companies would have to pay out.

The department would determine who would pay into the fund and how much it could potentially contain. The new Legislature convening in January then would have to pass a bill creating the fund.

"Nothing's on the table, nothing's off the table. It's wide open," said state Rep. Tim Grendell, R-Chesterland, who sponsored the bill. "It would be reckless right now to try to fill in those blanks."

He said Ohio's fund could be paid for by health care providers, a surcharge paid by consumers with health, auto and other insurance, cigarette taxes or punitive damages awarded to plaintiffs.

The Senate already has passed a version of the bill that did not include the compensation fund. The bill now returns to the Senate, which must agree with the changes for it to go to Gov. Bob Taft.

Current law does not limit the amount of money a jury can award a victim of medical malpractice for pain and suffering. Under the bill, damages would be capped at $500,000 for most claims and $1 million for injuries causing permanent disability or damage. The legislation does not affect jury awards for medical expenses and economic losses, such as future earnings.

Supporters, including doctors who say soaring malpractice insurance costs may force them to retire or leave the state, say caps are needed to end huge verdicts that are driving up rates. Opponents, including lawyers who represent malpractice victims, say the legislation does not hold insurance companies responsible for the rate increases.

House Speaker Larry Householder, R-Glenford, said the bill is fair for consumers because it creates a reasonable limit.

"At the same time with the pooling concept, we're keeping the amount health care providers would have out of pocket at a number everyone seems to think will allow the premiums to drop down," Mr. Householder said.

That, he said, will keep doctors in Ohio, ensuring patients access.

Under the legislation, if a jury awarded a patient $500,000, the doctor's insurance company would pay $350,000 and the fund would pay the remaining $150,000. Each would pay half of a $1 million award.

Rep. John Williamowski, a Lima Republican and chairman of the House Civil and Commercial Law Committee, said he wants the Insurance Department to spread out the costs of paying into the compensation fund over a broad base. The committee approved the bill Monday.

"The concept itself is sound," Mr. Williamowski said, noting that other states, including Nebraska and Indiana, have such funds. "Now we have to modify those ideas for what's best for Ohio."

In Indiana, doctors pay into the fund.

Mr. Grendell said that initially he thought the fund would need to be about $30 million to $50 million. He now believes, after talking with Indiana officials, that his estimate was too high.

Senate President Richard Finan, R-Evendale, said there could be problems with a compensation fund.

"If the pooling is in there, it's going to be a problem because it creates a taxpayer-funded pot and I don't think that's going to be acceptable," Mr. Finan said.

That probably would be avoided only if doctors paid into the fund, he said.