PA: Can the Commonwealth Use a Med Mal Insurer’s Surplus to Balance the Budget?

The Pennsylvania Professional Liability Joint Underwriting Association (JUA) was created by state law in 1975, but the entity is not a part of state government.  The JUA was founded as a last-ditch insurer for doctors at a time when malpractice insurance was in the first of several cyclical crises.  It has a surplus of $268M.  Pennsylvania, trying to balance its budget, passed a law requiring the JUA to turn over $200M of the surplus by December 1.  If it fails to comply, the law abolishes the JUA and transfers its money to the Department of Insurance.  The JUA has sued Governor Tom Wolf in federal court, asserting the seizure is an unconstitutional deprivation of property without due process of law.  The Inquirer has details.