JUA Fund Transfer Ruled Unconstitutional - 5/18/18
Written by Legislative Consultant, Bruce Hironimus

Yesterday’s decision by a federal judge prohibits a $200 million transfer to the Pennsylvania General Fund from a state-created insurance fund. The nonprofit Pennsylvania Professional Liability Joint Underwriting Association (JUA) was created by the General Assembly to provide medical malpractice insurance to Pennsylvania healthcare providers (but receives no money from the state).

It has an estimated $268 million in reserves, $200 million of which members of the General Assembly wanted to use to balance this year’s state budget (which the IFO is projecting will be about $200 million short of balanced when the fiscal year ends on June 30, due to the JUA transfer not being completed). The JUA has maintained its reserve funds do not belong to the Commonwealth, and U.S. Middle District Chief Judge Christopher C. Conner on Thursday agreed with their position, ruling the transfer would be an unconstitutional taking of private property.