The Maryland Insurance Administration recently ruled that CareFirst of Maryland Inc. and Group Hospitalization and Medical Services Inc. met their obligation to spend on “public interest” efforts last year.

The MIA, in a May 14 order signed by Insurance Commissioner Ralph S. Tyler, which was recently made public, ruled that the two nonprofit health insurers met the legal requirement that they spend at least as much as their premium tax exemption in public interest efforts.

The determination could take on additional importance as Washington, D.C.’s Council weighs requiring CareFirst Inc., the parent company of GHMSI, which operates in Washington, D.C., its Maryland suburbs, and Northern Virginia, to invest a greater portion of its $1.27 billion in reserves into public interest efforts.

The MIA ruled that the nonprofits met the requirement that they invest $23,825,033 in three state public interest programs: the Senior Prescription Drug Assistance Program, the Maryland Pharmacy Discount Program and the Community Health Resources Commission.

CareFirst received an exemption valued at $11,802,745 and spent $16,770,892 in “public interest” spending; GHMSI received a $14,428,331 exemption and spent $15,052,893 in “public interest” efforts, according to the MIA. Combined, the companies spent $31,823,785 on local efforts.

This story originally appeared in the September 2009 print edition of Insurance & Financial Advisor.