Court Blocks State's Attempt to Take $200 Million From Med Liability Organization

Last Updated: Dec 27, 2018

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HARRISBURG (12/19/18) – The following is a statement from Danae Powers, MD, president of the Pennsylvania Medical Society.
 
“The Pennsylvania Medical Society (PAMED) applauds the U.S. District court’s ruling this week that blocks the Commonwealth from taking more than $200 million from the Pennsylvania Professional Liability Joint Underwriting Association (JUA).
 
This landmark decision keeps alive a stabilizing force in Pennsylvania’s medical liability insurance market – protecting physicians in high-risk specialties and the patients they serve.
 
Between 2016-18, the state made three attempts to balance its budget by taking money from the JUA. Luckily, the transfer never took place.
 
The JUA and PAMED strongly advocated against this on behalf of Pennsylvania physicians.
 
In July 2018, the U.S. District Court for the Middle District of Pennsylvania issued an order granting the JUA’s request for a preliminary injunction. The JUA subsequently filed a motion for summary judgment seeking permanent injunctive relief.

PAMED and the American Medical Association (AMA) filed an amicus brief in support of the JUA, arguing that the move was unconstitutional. In this week’s ruling, the court says Act 41 of 2018 violates the Takings Clause of the Fifth Amendment of the U.S. Constitution.
 
The JUA was created by state law in 1976. However, it receives no money from the Commonwealth and never has.
 
Monies paid to the JUA by physicians and other health care providers should be used for the intended purpose of insuring against medical professional liability claims. Any attempt to seize money from this private, non-profit organization would have been inappropriate and left Pennsylvania patients and physicians at a disadvantage when the fund was needed.”
 
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Media Contact
Jeff Wirick
Pennsylvania Medical Society
(717) 909-2651
 
About Pennsylvania Medical Society
The Pennsylvania Medical Society helps its 21,000 physician and medical student members return to the art of medicine through advocacy and education. To learn more, visit www.pamedsoc.org or follow us on Twitter at @PAMEDSociety.
 
 
 

2 comments

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  1. Jack Wright | Dec 21, 2018
    Thank you for strongly advocating for PA physicians and patients.  What an attempted money grab, like $200 million will even make a dent in the PA deficit.  I wonder who first came up with the idea, our governor or the legislature?
  2. Ravi Kant | Dec 20, 2018
    PMS - Thanks for fighting for this. These politicians are always money hungry. State getting lots of additional money now from casinos and Oils and Gas industry, but they just keep spending on their pet projects. 

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