HARRISBURG, Penn., April 19 /PRNewswire/ -- The Pennsylvania Insurance Department today announced that it has received for approval the requested applications of reserve and surplus levels from the Blue Cross and Blue Shield plans. Specifically, the plans are Capital Blue Cross, Highmark, Inc. d/b/a Highmark Blue Cross Blue Shield and d/b/a Pennsylvania Blue Shield, Hospital Service Association of Northeastern Pennsylvania d/b/a Blue Cross of Northeastern Pennsylvania and Independence Blue Cross.
In a public informational hearing held in September 2002, the Department determined that the Blues Plans collectively held in excess of $2.4 billion in reserves for unpaid liabilities and approximately $3.5 billion in surplus as of December 31, 2002. Earlier this year, the Department directed the Blues Plans to submit applications to the Department to establish what an appropriate maximum excess surplus level is for each respective Plan. It also asked, if necessary, for a business plan on how any maintained surplus that exceeds the maximum level would be fairly and equitably distributed to benefit Plan participants and the Commonwealth’s underinsured and uninsured citizens in a manner befitting charitable and benevolent institutions such as the Blues Plans.
Deputy Commissioners Randy Rohrbaugh and Steve Johnson today issued the following joint statement on the issue of the surplus review and the public review of the filings:
“The Department is committed to completing the important process of analyzing the Blues surplus levels and is looking forward to receiving comments from the public on the applications so that it can complete its review with the public’s perspective and concerns in mind. However, the applications are currently unavailable for public review due to an order of confidentiality imposed by Commonwealth Court in a lawsuit brought by Capital Blue Cross.
“We have requested the Court clarify how long and to what extent the applications need to be kept confidential because the law requires that they be made available for public comment and the Department values that input. Once there is clarification on the matter of confidentiality, whatever is determined to be non-confidential will be available on the Insurance Department’s website, as well as at our regional offices in Harrisburg, Philadelphia and Pittsburgh, for consumers to view and offer comment. The Department also recognizes it may need to adjust the planned due dates for public comment and ruling on the applications, depending on when the Court provides clarification.”
Both Capital Blue Cross and Blue Cross of Northeastern Pennsylvania have opposed the Department’s request for clarification and continue to oppose the entire reserve/surplus application process. On Tuesday, April 13, State Rep. Phyllis Mundy filed a friend of the court brief in support of the Department’s request that the Court’s opinion be clarified to allow public disclosure of the applications.
The Department will post updates on its website at http://www.insurance.state.pa.us/ as additional information becomes available.
Contact: Rosanne Placey or Melissa Fox, both of Pennsylvania Department of Insurance, +1-717-787-3289
Pennsylvania Department of Insurance
CONTACT: Rosanne Placey or Melissa Fox, both of Pennsylvania Departmentof Insurance, +1-717-787-3289
Web site: http://www.insurance.state.pa.us/
