Health Care Providers Sue State Over $110 Million

By Elaine Grant on Friday, June 19, 2009.

A group of 200 health care providers are suing the state to stop it from taking more than $100 million dollars from a state-run malpractice insurance fund.

Lawmakers are counting on that money to help fill a budget shortfall estimated at more than half a billion dollars.

NHPR’s Elaine Grant has more.

The plaintiffs are hospitals, nursing homes, and physicians who have purchased malpractice insurance from the state-run fund.

Over two decades, the fund, called the Joint Underwriting Association, has built up a multimillion dollar surplus.

Policy holders have filed a request to freeze $110 million dollars they say the state is trying to steal.

The state says the law allows it to use a surplus any way it wants.

Nixon Peabody attorney Kevin Fitzgerald, who represents the plaintiffs, disagrees.

“This money, which has been described as found money, isn’t found money at all, it’s their money. And you can’t take money which doesn’t belong to you, no matter how difficult your financial problem.”

Plaintiffs also sued the insurance commissioner, saying he is illegally interfering with the board that runs the fund.

And they sued Attorney General Kelly Ayotte, who represents the state and the insurance department on the issue.

For NHPR News, I’m EG.