CareFirst Blue Cross Blue Shield has amassed an "excessive" amount of money and should reinvest a portion of it back into the District of Columbia, where the nonprofit insurer is headquartered, according to a ruling from the D.C acting insurance commissioner, reported the Washington Post.
In his decision, Chester McPherson found that CareFirst's $963 million surplus was more than necessary for the company to operate and said it must reinvest $56 million into the community. He gave CareFirst 45 days to submit a plan laying out how it will spend the money.
CareFirst warned that the decision could impact its operations in Virginia and Maryland, where it also provides health coverage. "We are still reviewing today's decision but believe it is flawed and directly conflicts with an order we have received from another jurisdiction," CareFirst spokesman Scott Graham told the Post. "We believe it will raise serious concerns in both Maryland and Virginia as it may be damaging to subscribers in all three jurisdictions." The insurer could appeal the decision.
To learn more:
- read the Washington Post article