The Pennsylvania Senate on Tuesday voted unanimously to approve an extension of a physician malpractice subsidy through 2008, the AP/Philadelphia Inquirer reports. A Democratic proposal to divert part of a surplus from the malpractice reserve to pay for adult health insurance was rejected by the chamber. Gov. Ed Rendell (D) said he will not approve another year of malpractice subsidy funds unless some of the surplus pays for adult health insurance (AP/Philadelphia Inquirer, 12/12).

Rendell earlier this month announced a new funding plan for his Cover All Pennsylvanians initiative that would use half of the revenue from the state's Health Care Provider Retention Account, which is projected to reach $414 million by Dec. 31. The account, funded by 25 cents of the state's $1.35-per-pack cigarette tax, was created to offset medical malpractice costs for physicians and hospitals in an effort to keep doctors and specialists in the state. According to Rendell, fewer malpractice lawsuits and lower malpractice insurance premiums have led to a surplus in the account that the state can afford to use (Kaiser Daily Health Policy Report, 12/11). The subsidy expires on Dec. 31 (AP/Philadelphia Inquirer, 12/12).

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