Highmark's excess profits violate state law, lawsuit claims

A lawsuit alleging that Highmark makes excessive profits that violate Pennsylvania's nonprofit law can continue, a Philadelphia judge ruled Tuesday. Herman Wooden and Thomas Logan, who previously were members of a committee that advised Highmark's board for 15 years, allege in the lawsuit that nonprofit Highmark has violated state laws by accumulating more than "incidental profit," the Pittsburgh Tribune-Review reported. Wooden and Logan also claim that Highmark should have used its excess profits to benefit customers. They seek remedies, which could force Highmark to refund excess profits to its members. In response to the judge's ruling, Highmark spokesman Michael Weinstein said the insurer will appeal the decision to the Pennsylvania Commonwealth Court. Article

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