Medical Society Files Legal Actions to Challenge Raid of Mcare and Health Care Dollars
With the ink barely dry on the governor’s signature on the state budget, the Pennsylvania Medical Society this week took a series of legal actions to challenge the use of physicians’ premium dollars and other health care monies to balance the budget.
Two state-managed funds are at issue: the Mcare Fund and the Health Care Provider Retention Account (HCPRA).
Mcare Fund raid
On Oct. 12, the Medical Society and The Hospital and Healthsystem Association (HAP) filed lawsuits aimed at safeguarding approximately $100 million that was redirected from the Mcare Fund into the state’s general fund.
The Society contends that the Mcare Funds are not tax dollars, but rather premiums in the form of assessments paid by physicians, hospitals, and other providers, and should not be diverted for any other purpose.
The Society and HAP also filed a motion for a preliminary injunction asking the court to prevent transfer of the money from the Mcare Fund while the lawsuit is being litigated.
The notion by some in the legislature that the Mcare balance resulted from automobile moving violation surcharges deposited in the Fund is just plain wrong. The Medical Society contends that the money from moving violations was dedicated to covering the cost of the discount and abatement programs, and that, rather than “leftover” funds, those programs have a funding deficit in excess of $400 million.
Lawsuit to preserve HCPRA funds
Other legal actions, originally filed in December 2008 by the Medical Society and HAP, attempt to require transfer of funds in the Health Care Provider Retention Account (HCPRA) to Mcare to offset the shortfall in abatement funding of over $400 million. The HCPRA funds were also redirected to help balance the state budget.
In August, Commonwealth Court ruled in favor of the Medical Society and HAP, by rejecting the state’s motion to dismiss the HCPRA lawsuit. The Society’s position in the HCPRA litigation is that the administration failed to fully fund the abatements for the 2003-2007 assessments as required using cigarette tax revenue deposited in HCPRA and moving violations revenue.
On October 12, the Medical Society and HAP filed a motion for a preliminary injunction asking the court to prevent transfer of the HCPRA funds needed to fully fund the abatements while the lawsuit is being litigated.
Next steps
Essentially, the Medical Society and HAP contend that the state is balancing the budget on the backs of health care providers and their patients.
By filing this series of legal actions, the Society hopes not only to reverse the illegal redirection of physicians’ premium monies, but to also repair the damage inflicted on the state’s medical practice environment and ability to recruit new physicians.
Last Updated: 10/13/2009