Pennsylvania is set to receive a $200 million boost to its general fund following a major legal win led by Attorney General Dave Sunday. This funding comes from the Professional Liability Joint Underwriting Association (JUA), an insurance group originally created to provide coverage to high-risk medical providers who might otherwise struggle to find insurance.
The battle over this money has been ongoing since 2017. At the heart of the dispute was whether the JUA’s large surplus belonged to the public or to the private insurers involved. The Attorney General argued that because the JUA was created by state lawmakers, it should be seen as a public agency. A federal court agreed with this view last December, which allowed the state to claim its share.
The JUA was established nearly 50 years ago and is funded by premiums from its policyholders and earnings from investments. It does not get direct funding from the state or its member companies. All insurers offering medical professional liability coverage in Pennsylvania are required to be part of the JUA. Over time, the JUA has built up around $300 million in surplus funds, money that, by law, it cannot pay out to policyholders.
The dispute began after a 2017 law instructed that $200 million from this surplus be moved to the state’s general fund. The JUA challenged this, suing the Governor and the state’s Insurance Commissioner. The Attorney General’s Civil Litigation Section represented these officials throughout the case.
In December, the Third Circuit Court of Appeals ruled in favor of the state, marking a significant win for Pennsylvania taxpayers. This decision means the state can now access the JUA’s surplus funds, which are far more than needed for insurance claims reserves. Attorney General Sunday praised his team for their persistence, calling the outcome a major win for those in Pennsylvania.
This ruling effectively ends years of back-and-forth between the state and the JUA over who controls these funds. For now, Pennsylvania will be able to use the $200 million to support its budget, while the remaining surplus continues to sit in the JUA’s accounts.