Court orders Wisconsin to return $200 million from med mal fund

From Modern Healthcare:

The Wisconsin Supreme Court has ordered the state government to return $200 million drawn from a fund established to mitigate the costs of medical liability.

Under a 1975 law, healthcare providers are required to pay assessments into the fund and carry a certain level of malpractice insurance. The fund pays out the portion malpractice claims in excess of that limit.

In 2007 state lawmakers approved legislation providing for the transfer of $200 million from the liability fund to prop up the Medicaid program. The transfer caused assessments to rise by nearly 10%, and the fund had to draw a loan from the state’s investment fund to cover a negative balance.