JUA Fund Transfer Finalized in 2025–2026 Pennsylvania Budget

Earlier this week, the Pennsylvania General Assembly passed the 2025-2026 Commonwealth Budget. Unfortunately, as part of a last-minute budget agreement, there was a transfer from the Joint Underwriting Association (JUA) to the Pennsylvania General Fund of $100 million. These funds were earmarked to cover a budget deficit and fund medical assistance payments throughout the 2025-2026 fiscal year.

 

As you are well aware, PAMED has been fighting the raid on the JUA funds since 2017. Often, we were the only entity outside of the JUA itself to take on this fight. We submitted numerous amicus briefs and employed advocacy efforts. PAMED delayed but ultimately could not stop the Commonwealth from transferring the funds.

 

On December 16, 2024, the United States Court of Appeals for the Third Circuit concluded that the JUA was a public, rather than a private, entity. In April, PAMED and AMA filed an amici curiae (friends of the court) brief in the United State Supreme Court in support of the effort of the Pennsylvania JUA to have the Supreme Court review its case against Governor Shapiro and the Commonwealth of Pennsylvania. On June 23, 2025, the Supreme Court denied JUA’s petition for the Supreme Court to review its case against Governor Shapiro and the Commonwealth of Pennsylvania and paved the way for the Commonwealth to take the funds. The transfer of $200 million from the Pennsylvania JUA  to the general fund of the Commonwealth of Pennsylvania was completed on August 13, 2025.

 

Just as a reminder, the effort to move the JUA under the Department of Insurance and transfer funds has been a coordinated effort by each chamber of the legislature and two Administrations. It is not an R or D issue, nor is it a Legislative or Administrative issue. In short, the entire Pennsylvania government is in agreement.

 

This current action is the codification of the process to transfer those funds from the JUA to the general fund, which is why it was included in the fiscal code. PAMED, nor any other stakeholder, was given any advance notification that this would be in the fiscal code. To be clear, the court has determined that it is legal for the Commonwealth to oversee and manage the JUA funds. Therefore, PAMED cannot stop the transfer of funds. The fiscal code inclusion was used because that is the legislative vehicle to fund the budget, which this transfer is being used to cover Commonwealth revenue estimated shortfalls.

 

Despite the Supreme Court declining to take up the case, PAMED will continue to oppose legislative efforts to transfer of JUA funds into the Commonwealth General Fund.