Insurer Threatens to Sue if Pennsylvania Tries to Take $200M

An organization created by state law to offer medical malpractice insurance is threatening to sue if Pennsylvania state government tries to take $200 million from it.

The nonprofit Pennsylvania Professional Liability Joint Underwriting Association said Monday that the state doesn’t own the money and has no right to seize it.

The association sued in federal court to block the state from borrowing that amount in the recently ended fiscal year to help balance its deficit-riddled budget. Legislation passed by the Senate last week would abolish the association if it doesn’t hand over $200 million by Nov. 1.

The bill says the money doesn’t belong to association members or people or groups covered by its policies. It says the money belongs to the state.

The bill is pending in the House.