Nation - Wisconsin State loses lawsuit over fund transfer Must pay back $200 million

By Scott Bauer Associated Press Writer MADISON, Wis. (AP) -- The state must pay back $200 million it raided from a medical malpractice fund to help balance the budget in 2007, a divided Wisconsin Supreme Court ruled on Tuesday. In its 5-2 decision, the court agreed with the Wisconsin Medical Society that taking the money from the fund was unconstitutional. It sent the case back to a lower court with directions that it order the state to pay back the money with interest. It was unclear from the ruling when the money would actually have to be returned. State Rep. Mark Pocan, co-chairman of the Legislature's budget-writing committee, said it was too early to know whether the decision would force lawmakers back into session before they are scheduled to return in January. "We just really don't know at this point," the Democrat said from Madison. The state budget is projected to finish the current fiscal year on June 30 with a balance of $45 million, not enough to absorb a $200 million hit. Lawmakers could be forced to return if the state Department of Administration determines emergency action needs to be taken to keep the budget in balance. Dan Schooff, secretary of the department, said he was reading the court's opinion and would comment later Tuesday. A spokeswoman for the Wisconsin Medical Society did not immediately return a message. The Medical Society, which represents doctors, argued the transfer amounted to an illegal raid by the state and the Supreme Court agreed. The fund is used to help Wisconsin health care providers pay medical malpractice claims. A Dane County judge dismissed the case in 2008, but the Medical Society appealed. An appeals court sent the case directly to the Supreme Court, which ruled in favor of the doctors saying health care providers have a protectable property interest in the fund. The Medical Society argued that the transfer threatened the soundness of the Injured Patients and Families Compensation Fund and resulted in an increase in the annual assessments charged to health care providers to make up for the transfer. An audit in March warned that the fund was in poor financial shape because of the raid. Lawmakers and Gov. Jim Doyle agreed in 2007 to the transfer to pay for other medical programs as part of a deal that ended a lengthy budget stalemate. Pocan said it was "infinitely fair" to pin blame for the raid on Republicans, who controlled the Assembly when the budget in question was approved. However, Democrats also played a key role in the move. Doyle, a Democrat, backed it and it was also approved by the Democratic-controlled state Senate. Senate Majority Leader Russ Decker, D-Weston, did not immediately return a call seeking comment. A Doyle spokesman also did not immediately return a message for comment. About 13,000 health care providers participate in the fund, which has been credited with keeping malpractice insurance rates low. It pays for claims that are more than a provider's primary malpractice insurance covers, which is generally $1 million per case. Published: Wed, Jul 21, 2010

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