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Friday, October 09, 2009

Schroder questions constitutionality of raiding MCARE Fund



Rep. Curt Schroder (R-Chester County) is challenging the constitutionality of an amendment to the state's fiscal code that will drain the reserves in the medical malpractice fund, known as MCARE.

Schroder warned Thursday on the floor of the House that the $100 million contained in the account belongs to the medical providers who have been paying into the system since the state mandated they do so in the mid 1970s.

MCARE pays higher cost medical malpractice claims. Physicians are assessed a charge each year to pay for malpractice claims covered under MCARE. Schroder called the House's action an "embezzlement" of funds belonging to physicians and a breach of faith with the medical community.

Schroder's move to challenge the constitutionality of the House's action failed by a one-vote margin, but he said the matter is sure to face a legal challenge.

The fiscal code is expected come up for final approval on Friday.

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