Pennsylvania Legislative Budget and Finance Committee

Lewin contact: Lisa Chimento

In the last few years, the public's focus on the financial activities of Blue Cross and Blue Shield plans has intensified. First, the Blues nationwide started seeing large increases in their earnings. Second, the economy softened at the same time that health care costs swelled. In Pennsylvania, as in other states nationwide, this increased the numbers of uninsured and made it harder for those having insurance to afford it. Some stakeholders argued that the Blues should give up portions of their surpluses to help make health coverage more affordable. The Pennsylvania Legislative Budget and Finance Committee commissioned The Lewin Group, pursuant to House Resolution No. 865, to conduct a study of the regulation and disposition of reserves and surpluses of health insurers in Pennsylvania—specifically the four Blue Cross and Blue Shield plans in the state. The report is divided according to the two central topics: the issue of the Blues' reserves and surpluses, (including an analysis of measures already taken to regulate the Pennsylvania Blues' reserves and surpluses, and other states' laws and practices) and an assessment of the Blues' community benefit spending and activities, along similar dimensions.

"Throughout the engagement, Lewin consultants listened to us and delivered superb analyses and thoughtful guidance–not canned solutions."  NONPROFIT HEALTH SYSTEM