Pa. Insurance Department Responds to JUA Proposal to Pay a Portion of Med Liability Tail Coverage for Hahnemann Physicians

Last Updated: Dec 26, 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 asked the Insurance Department to take any steps to grant approval, if needed, in a timely manner.

On Dec. 24, 2019, the PID sent a letter in response to JUA's request. "Given the importance of understanding the position of the court in this matter before considering alternative solutions, the PID’s evaluation of your request must await the resolution of this active litigation," the letter said. The PID indicated that it would respond again once the outcome of the court proceedings is known. Read the PID's letter

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 offers resources on Hahnemann's closure, including a claims-made insurance primer with suggested next steps to help physicians obtain insurance coverage after the end of the claims-made policy. Get PAMED's Hahnemann FAQs and resources at www.pamedsoc.org/Hahnemann

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