CareFirst Faulted for Low Spending on Public Health

[MountainLaurel]

A study of the region's largest health insurance provider concludes that CareFirst BlueCross BlueShield is shirking its mission and legal obligation to support local public health needs, spending a tiny fraction of the at least $40 million it should commit annually.

The study, to be released today by the DC Appleseed Center for Law and Justice, faults the nonprofit CareFirst for directing less than $1.5 million through its District-based affiliate this year to community activities.

Given the affiliate's billion-dollar worth and its federal charter as a "charitable and benevolent institution," this year's contribution "could and should" have been between $40 million and $61 million, according to the center. Neither the company's competitive position nor financial stability would be endangered by the calculation, the report says.

"The company is falling far short of its obligation and is missing huge opportunities to address health care needs in this community," the study says. Local leaders suggest such counter efforts as a regional campaign on diet, exercise and smoking; a comprehensive initiative on mental health problems; and expansion of low-cost health insurance offerings.

http://www.washingtonpost.com/wp-dyn/articles/A38103-2004Dec5.html