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Care providers to get $200M

HARRISBURG — Health care providers will be getting $200 million from the state of Pennsylvania in a settlement over litigation about a massive fund set up to help doctors pay malpractice insurance premiums.

The Corbett administration said the state would pay $139 million in refunds, starting in a year and-a-half, and to cut what providers must pay into the Medical Care Availability and Reduction of Error fund by $61 million through a revised formula.

Groups that represent doctors and hospitals sued in 2009 after the state transferred $100 million from the Mcare Fund, as it is known, to the state’s general fund to help balance the budget under then-Gov. Ed Rendell.

The groups argued they were being overcharged, allowing the state to gain a fund surplus. The other parties were the Pennsylvania Medical Society and the Pennsylvania Podiatric Medical Association.

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