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Lawsuit Could Add to State Budget Woes
By Elaine Grant on Friday, June 19, 2009.
In a budget season marked by squabbling between the House and the Senate, lawmakers have agreed on one source of revenue.
They are counting on using $110 million from a medical malpractice fund.
But that money may be tied up in court.
NHPR’s Elaine Grant has more.
It couldn’t have happened at a worse time for budget writers.
Senate and House lawmakers have been unable to agree on the budget and have been negotiating into the night.
And now a group of health care providers has sued to stop the state from taking $110 million they say belongs to them.
They are policy holders in the Joint Underwriting Association, a medical malpractice fund run by the state.
Earlier this month, Senate Finance Committee Chairman Lou D’Allesandro argued that the state stands on solid legal ground in using the money.
But he agreed at the time that a lawsuit would make an already difficult budget season even more onerous.
“Well, I think that if you froze $110 million, you would create a problem, there’s no question about that!”
Plaintiff’s attorney Kevin Fitzgerald says he would not be surprised to see the case go to the New Hampshire Supreme Court.
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Regardless of the legality, the intent of the fund was to encourage doctors to practise in NH. If the fund became too high, the intent was that the money be returned to those who contributed it, not to be taken by the State. It's indeed unfortunate that the rates set were not substantially lower.