After Doyle and Legislature raid, patients fund has to borrow money
New Richmond News
The state fund that covers medical malpractice claims had to borrow millions after the governor and legislature raided it to balance the new state budget.
According to the Wisconsin State Journal, the fund borrowed $46 million from other state accounts just to cover its obligations. And its paying interest on that money.
State administration and insurance officials are not saying much about it because the State Medical Society is suing the state over a transfer that will total $200 million.
Senate Minority Leader Scott Fitzgerald said the fund should have been given more time to sell off assets like stocks and bonds to cover the fund transfer.
Because that wasn’t done, the malpractice fund was still $44 million in the red at the end of November.
Gov. Jim Doyle and lawmakers said the fund had more than enough assets to handle the budget transfer.
The state will take another $128 million in July and by then Fitzgerald says the process will be smoother.
The fund had $831 million in assets at the end of September, including $17 million in cash.