From Citizen.com: Lynch touts his fiscal conservatism
Governor "Don Quixote" Lynch just can't bring himself to say that the surplus funds belong to policyholders. If he would just do that-- and stop trying to take this money-- policyholders could take some comfort that their constitutional rights will be protected. The Governor and his Insurance Commissioner were sent packing with a 10 to 0 bipartisan rebuff of his first efforts to change the rules. He has lost in the Superior Court, the Supreme Court and the legislative committee that approves rules changes. Three strikes and you are out, right? Alas, no. His crusade continues. Governor, please stop tilting at windmills. Obey the law. Leave the policyholders funds alone.
Excerpted below is from the Citizen article linked above:
"... Of particular interest to the Lakes Region, Lynch said he continues to support efforts to bring surplus assets from the N.H. Medical Malpractice Joint Underwriting Association into the state budget.
Lynch has been foiled twice in his attempts to do that, first by the Belknap County Superior Court and then by the N.H. Supreme Court which ruled that the surplus belongs to policyholders, among the largest being LRGHealthcare, the parent of Lakes Region General and Franklin Regional hospitals.
The JUA, said Lynch, "was created by taxpayers through the Legislature," but, should it be deemed not a state agency, then policyholders could face up to a $100 million federal tax liability and a $30 million state tax liability. The JUA fund currently has a balance of some $180 million.
For the immediate future, Lynch said, the challenge is to draft new rules for the JUA that spell out that it is, indeed, a state entity and therefore not subject to the tax liabilities mentioned above. Once that has been accomplished, Lynch said, a discussion could focus on where the money in the JUA fund should go."
Lynch has been foiled twice in his attempts to do that, first by the Belknap County Superior Court and then by the N.H. Supreme Court which ruled that the surplus belongs to policyholders, among the largest being LRGHealthcare, the parent of Lakes Region General and Franklin Regional hospitals.
The JUA, said Lynch, "was created by taxpayers through the Legislature," but, should it be deemed not a state agency, then policyholders could face up to a $100 million federal tax liability and a $30 million state tax liability. The JUA fund currently has a balance of some $180 million.
For the immediate future, Lynch said, the challenge is to draft new rules for the JUA that spell out that it is, indeed, a state entity and therefore not subject to the tax liabilities mentioned above. Once that has been accomplished, Lynch said, a discussion could focus on where the money in the JUA fund should go."
Because policyholders' rights to the surplus cannot be reconciled with the claimed tax status, the implication of the Governor's comments are "Let me change the rules so policyholders have no rights, and then let's figure out where the money goes...." And if the policyholders don't get it, you can bet that it will be headed to the general fund.
The constitutional assault and attempted theft continues.....
