Feb 13, 2009

In NH, Governor Eyes Medical Malpractice Insurance Fund Surplus to Balance Budget

Sourced from the Keene Sentinel's full text of Gov. John Lynch's remarks to Legislature on Feb. 12, related to Medical Malpractice Insurance Fund.
"Today, I am recommending three steps to fill the remaining budget gap. First, the federal Medicaid increase expected this year will reduce that shortfall by approximately $50 million. Second, in the 1980s, the legislature established a medical malpractice insurance fund, exempt from state taxes. Over the years, this fund has built up a $110 million surplus. Under the law, the fund’s insurance premiums must be competitive with the rest of the market – and in fact its premiums are on average 10 percent below market. It cannot return this surplus without risking decimating the private insurance market. We recommend using $50 million of that fund’s surplus to help fill the remaining budget gap for fiscal year 2009 so that we can protect essential health services."
Read full text of remarks here: NH budget.