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.

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.