Joint Underwriting Association

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Gov. Tom Wolf and legislative leaders are being sued in federal court over a budget provision to fold a medical malpractice insurer and its assets into the state Insurance Department.

It’s the latest development in the commonwealth’s repeated attempts to take $200 million from the group’s surplus.

This is the third time the Joint Underwriting Association has sued the state—insisting its funds are separate from the commonwealth’s. Its employees don’t receive state benefits, and it’s not housed in a state building.

401(K) 2012/Flickr

A provision in the new state budget is seeking to end a two-year legal battle between lawmakers looking for cash to shore up their spending plan, and a medical malpractice insurer the state created in the 1970s.

Matt Rourke / AP

A judge has issued an injunction that will at least delay state lawmakers from getting some of the money they planned for in the revenue plan they finished last month.

The cash is tied to a pending case about whether the state can constitutionally force the Joint Underwriting Association—a medical malpractice insurer—to give up $200 million.

This is the second year lawmakers have tried to take surplus money from the JUA to help balance perennial budget gaps.