Malpractice Insurer Sues PA For Third Time In Three Years
HARRISBURG, PA (WSKG) -- Governor Tom Wolf and legislative leaders are being sued in federal court over a budget provision to fold a medical malpractice insurer and its assets into the state Insurance Department.
It's the latest development in the commonwealth's repeated attempts to take $200 million from the group's surplus.
This is the third time the Joint Underwriting Association has sued the state--insisting its funds are separate from the commonwealth's, its employees don't receive state benefits, and it's not housed in a state building.
In May, a middle district judge sided with it--declaring the association a private entity.
Lawmakers passed over the appropriation strategy in the latest budget, instead opting to entirely absorb the JUA's operation--which covers hard-to-insure medical practitioners--into the Insurance Department.
So now, the group is suing again.
This time, it's saying the state is trying to illegally requisition private property and make the JUA a "puppet of the Commonwealth."
It has also filed a motion for a temporary restraining order and preliminary injunction against the move.
Spokespeople for the Wolf administration have declined to comment, citing pending litigation.