Foster Testifies for CareFirst at Hearing
"D.C. Regulators Hear CareFirst Defend Surplus", The Baltimore Sun
Constance B. Foster, Vice Chair of the Business Department and Co-Chair of the Practice Group, and Harrisburg Office Managing Partner, testified for CareFirst BlueCross BlueShield, a regional nonprofit health insurer, at a Washington D.C. hearing on March 24 against accusations that the company isn't meeting its legal obligations for charitable spending.
This hearing was triggered by a December report by an advocacy group, the D.C. Appleseed Center for Law and Justice. The report found that, based on its reserves and profitability, CareFirst should be contributing about $50 million a year to the community of Washington and its suburbs. CareFirst contributed $1.2 million last year.
Ms. Foster said the term "surplus" is often misunderstood by the public to mean "extra," but that insurers need money in reserve to meet obligations to policyholders in the event of unforeseen events, such as an epidemic.