From a press release we sent out today:
OLYMPIA, Wash. � With two of the state�s largest health insurers sitting on surpluses totaling $2.2 billion, Washington�s top insurance regulator wants to use some of that money to lower costs for consumers.
According to the companies� most recent financial statements, Regence BlueShield�s surplus has grown to $1.05 billion. Premera Blue Cross� surplus is $1.15 billion.
�These are non-profit companies,� said Insurance Commissioner Mike Kreidler. �It�s hard to square their billion-dollar surpluses with the fact that families are struggling to afford health insurance.�
Kreidler is proposing legislation that would allow his office to consider surpluses when reviewing nonprofit health insurers� proposed rates. As things stand now, his staff must ignore them.
�As I�ve said before, it�s like trying to ignore an elephant in the room,� Kreidler said. �And the elephant�s getting bigger.�
The surpluses of both Regence and Premera have more than doubled in a decade. In the first nine months of 2012, Regence�s grew by $60 million. Premera�s grew by nearly $182 million.
�It�s important to remember that these are not reserves, which are set aside to pay future claims,� Kreidler said. �These billion-dollar surpluses are in addition to their reserves.�