You can't put a price tag on what CareFirst BlueCross BlueShield owes the District's charities.
That's the conclusion of the city's attorney general, after reviewing a local advocacy's critical report of the health insurer that called for CareFirst's D.C. affiliate to pump up its charitable obligations.
After the D.C. Appleseed Center for Law and Justice issued the report in December, D.C.'s city administrator called for a review from Attorney General Robert Spagnoletti.
In a March 4 memo, Spagnoletti concluded that while CareFirst's D.C. affiliate does have an obligation to use some of its profits to promote health in its service area, the affiliate does not have an obligation to satisfy any minimum threshold for providing services at no charge or for making contributions to other organizations.
What's more, according to the memo to City Administrator Robert Bobb, District officials cannot use common-law authority to compel the D.C. affiliate, Group Hospitalization and Medical Services, to divert funds from its own operations on behalf of its paying health-plan subscribers.
Spagnoletti's memo is expected to be released March 24 at a public hearing held by D.C. Insurance Commissioner Larry Mirel where residents may testify about CareFirst's charitable obligation to the city. CareFirst execs also will testify at the hearing.
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