I have some really good news about our longstanding efforts to hold CareFirst BlueCross BlueShield accountable to its nonprofit mission.
Your probably remember that almost a year-and-a-half ago–December 2014–the D.C. Insurance Commissioner determined that CareFirst had improperly accumulated more than $268 million of excess surplus. And he ordered the company to file a plan no later than March 16, 2015 detailing how it intended to spend $56 million of that excess here in the District.
But instead of complying with the Commissioner’s order, CareFirst wrongly asserted that it had already spent the $56 million and therefore would not be filing a plan.
Today, as we and many others have urged him to do, the Commissioner rejected CareFirst’s claim that it has already spent the $56 million. The Commissioner also announced that he intended to follow the law’s requirement that he will approve no rate increases for CareFirst until he approves a plan to spend the $56 million.
In addition, in order to develop a plan for spending the $56 million, the Commissioner called for a 30-day public comment period on the plan and announced that he will approve the plan within 30 days after the comment period closes.