Study Questions Size of BCBS-NC's Reserves
Thursday, July 22 2010
by Rose Hoban
Jeremy Loeb: A new report says Blue Cross/ Blue Shield of North Carolina is one of a handful of 'blue' insurers around the country with an excess of reserve. Rose Hoban reports.
Rose Hoban: Consumers Union - the people who publish Consumer Reports - examined ten of the largest so-called 'blue' insurers around the country. The study found B-C-B-S has one of the largest reserve funds of the group. But Blue Cross spokesman Lew Borman says their 1-point-4 billion dollar reserve is prudent.
Some states, such as Pennsylvania have created upper limits for reserves held by insurers. A spokeswoman from the state Department of Insurance says it would be up to lawmakers to enact such a limit in North Carolina. Borman predicts rate increases for Blue Cross Blue Shield this year will probably in the low double digits. Rose Hoban, North Carolina Public Radio, WUNC.
