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Consultants' report finds CareFirst reserves not excessive

NEWS IN BRIEF — Posted Nov. 23, 2009

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Consulting firm Invotex Group, which was hired by Maryland Insurance Commissioner Ralph Tyler to evaluate if CareFirst BlueCross BlueShield holds excessive financial reserves, found that the insurer's surplus is not too high.

CareFirst's reserves are held by its two nonprofit subsidiaries, CareFirst of Maryland Inc. and Group Hospitalization and Medical Services Inc., and its for-profit HMO subsidiary, CareFirst BlueChoice Inc.

Tyler planned to hold a public hearing Nov. 19 to discuss the report's findings. Washington, D.C., Insurance Commissioner Gennet Purcell is conducting a similar evaluation of CareFirst expected to be complete before the end of the year.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2009/11/23/bibf1123.htm.

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