JUA Shares Proposal to Pay a Portion of Med Liability Tail Coverage for Hahnemann Physicians

Last Updated: Nov 27, 2019

professional-liability-insuranceThe Pennsylvania Professional Liability Joint Underwriting Association (JUA) has offered to fund up to 50 percent of the cost of medical liability insurance tail coverage for Hahnemann residents and fellows affected by the bankruptcy of Philadelphia Academic Health System (PAHS).

In a letter sent to the Pa. Insurance Department on Nov. 26, JUA shared its proposal to use surplus funds to:

  • Cover up to 50 percent of the cost of tail coverage for Hahnemann residents and fellows who have been displaced and left without tail coverage, up to a total of $25 million
  • Cover 10 percent of the premium cost for the displaced attendings who seek coverage from JUA

The JUA believes that providing the necessary insurance for these professionals is within its mission. However, it has reached out to the Insurance Department to determine whether the Department takes the position that prior approval is required for the JUA to offer tail coverage funding. The JUA has asked the Insurance Department to take any steps to grant approval, if needed, in a timely manner.

The Pennsylvania Medical Society (PAMED) is monitoring this issue closely. We will share any news concerning the Insurance Department’s response once this information is available.

Next Steps

PAMED continues to work with stakeholder groups – including the Philadelphia County Medical Society and the American Medical Association (AMA) – on efforts to support the physicians affected by the Hahnemann closure.

PAMED is developing new resources on Pennsylvania’s medical professional liability insurance requirements, a brief explanation of claims-made policies, and suggested next steps to help obtain insurance coverage after the end of the claims-made policy. We will notify our members when these resources are ready.

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