The Pennsylvania Medical Society (PAMED), which late last week hailed important victories in lawsuits regarding disputed Mcare monies, is now preparing for the state’s appeal of the Commonwealth Court rulings.
The Commonwealth Court ruled (4-1) on Thursday, April 15, 2010, in favor of PAMED and The Hospital and Health System Association of Pennsylvania in the two landmark legal actions. On Tuesday, April 20, the state appealed the decision.
The first lawsuit, filed in 2008, challenges the administration’s failure to fully fund abatements of Mcare assessments levied on physicians from 2003-2007. The state made this commitment in exchange for physicians agreeing to continue to practice in Pennsylvania for the following calendar year.
The second lawsuit, filed in 2009, challenges an illegal transfer of $100 million from Mcare to the general fund. More than $500 million dollars is at issue in the two lawsuits—more than $400 million of abatement under-funding and the $100 million taken from the Mcare Fund.
The overall goal of both lawsuits is to preserve access to care in the commonwealth. The Mcare Fund has an unfunded liability of about $1.66 billion. Addressing the unfunded liability is urgent, as the fund is scheduled to be phased out and replaced by private insurance coverage. Under current law, that obligation would have to be paid by physicians and hospitals, even after Mcare coverage has ended.