Pennsylvania’s four Blue Cross health insurance corporations may retain cash surpluses that amounted to $3.9 billion at the end of 2003. Insurance Commissioner Diane Koken’s recent ruling ended a two and one-half year process by also establishing how much extra money Highmark Inc., Capital Blue Cross, Blue Cross of Northeastern Pennsylvania and Independence Blue Cross can keep.
“We have determined that the plans are not operating with inefficient or excess surplus,” Koken said. Smaller cash surpluses could put the not-for-profit insurers at too great a financial risk, the department’s actuary, Chet Szczepanski said.
Highmark spokesman Michael Weinstein said the surplus is needed for spending on equipment and other capital needs in the coming years. He said it amounts to a cushion of just more than $500 for each of the 4 million people Highmark insures.
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