D.C.’s insurance regulator is ordering a CareFirst BlueCross BlueShield subsidiary to issue rebates to subscribers worth up to $51.3 million of a $56 million “excess surplus” the company was told it owes in community reinvestment, it was announced Wednesday.
It was the final decision in the ongoing battle over the size of a surplus carried by Group Hospitalization and Medical Services Inc., or GHMSI, dating back to 2011. In his order, D.C. Department of Insurance, Securities and Banking Commissioner Stephen Taylor said the nonprofit insurer had already reinvested about $4.9 million through rate reductions.
But, he ordered, GHMSI should pay the rest through the rebates.
The order was created after Taylor ruled earlier this summer that CareFirst failed to come up with a suitable response to how it would return a portion of the surplus. A former D.C. insurance commissioner ruled in December 2014 that GHMSI had an “excessive” surplus of at least $963 million in 2011 and needed to reinvest…
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