Report To The Pennsylvania Insurance Department Concerning The Applications Of Blue Cross Plans For The Approval Of Reserves And Surplus

On August 6, 2004, the Pennsylvania Insurance Department (Department) invited public comment on the applications of Highmark Blue Cross Blue Shield (Highmark), Independence Blue Cross (IBC), Capital Blue Cross (CBC) and Blue Cross of Northeastern Pennsylvania (BCNEPA) for approval of their reserves and surplus. Thirteen Pennsylvania not-for-profit organizations and trade unions and the national Consumers Union of the U.S., along with the City of Philadelphia, concerned about the impact on policyholders, the uninsured and the general public of the buildup of $4 billion of surplus on the balance sheets of the nonprofit Blue Cross Plans (the Plans), retained IMR Health Economics, LLC, to conduct this independent analysis of the applications filed with the Department in this proceeding.