Federal health reform could force CareFirst to dip deeper into its reserves than had been anticipated with Washington, D.C., officials began investigating its surplus two years ago.

Reacting to a consumer complaint about unusually high health insurance premiums, the District of Columbia Department of Insurance, Securities and Banking (DISB) rescinded its approval of a rate increase proposed by CareFirst after discovering a filing error by the regional insurer.

In what is likely to be his last act as Maryland’s insurance commissioner, Ralph S. Tyler has ruled that the reserve levels of two CareFirst subsidiaries “are neither unreasonably large nor excessive.”

The end of 2009 was supposed to bring a final determination by Washington, D.C.’s insurance regulators on whether the reserves of a CareFirst subsidiary were “unreasonably large,” as defined by law. Instead, the review will continue into this year.

Prior to leaving office as Maryland’s insurance commissioner, Ralph S. Tyler says his agency will provide state legislators with recommendations on how to better govern the reserve levels of non-profit health insurers.

Much like Goldilocks, when it comes to assessing its hundreds of millions of dollars in reserve funds, regional insurer CareFirst feels it is not too big, nor too small, but just right.

Gennet Purcell was confirmed as commissioner for the District of Columbia Department of Insurance, Securities and Banking (DISB), following a unanimous vote by the D.C. Council.

Health insurer CareFirst and one of its regional subsidiaries do not have excessive surplus and efforts to divide those funds could prove detrimental, according to a new report.

The Maryland Insurance Administration will hold a public hearing to discuss the reserve levels of Owings Mills, Md.-based CareFirst and its Group Hospitalization and Medical Service’s subsidiary Nov. 19.

A little less than a week before it was to decide whether the reserves of a CareFirst subsidiary is “unreasonably large,” Washington, D.C., insurance regulators are delaying their final verdict until the end of December.