Non-profit Blue Cross and Blue Shield health plans stockpiled billions of dollars during the past decade -- while at the same time charging consumers double-digit premium increases.
Insurers must keep surplus money to ensure they can pay policyholders' medical bills. However, seven of the plans examined in a recent report held more than three times the amount regulators consider the minimum needed to do that.
According to USA Today:
“The report calls on state insurance regulators to scrutinize surpluses when considering rate increases and set maximum limits for surpluses. In most states, it said, regulators focus only on ensuring companies have minimum surpluses to be financially sound.”