A medical malpractice insurer filed a lawsuit against Pennsylvania state government over its financial demand and threat.
Last month, Gov. Tom Wolf signed a budget-related legislation to seize $200 million from the Pennsylvania Professional Liability Joint Underwriting Association (JUA). In addition, the bill threatens to shut down the medical malpractice insurer if it refuses to hand over the money.
In 1976, Pennsylvania created JUA as a private association. It is responsible for helping physicians and other health care providers obtain mandatory medical liability insurance. The association does not receive funding or is not run by the State government. In other words, JUA’s assets are private.
In its complaint, JUA is asking the court to stop the Pennsylvania state government’s plan to sequester its money. The association argued that losing $200 million will “seriously imperil” its operations. It will negatively impact its ability to fulfill insurance coverage obligations to policyholders.