Highmark Defends Surplus Position

NU Online News Service, Sept. 4, 2:45 p.m. – Highmark Inc., Pittsburgh, is trying to defend its need for a high level of surplus.

Highmark, the parent company of Blue Cross and Blue Shield of Western Pennsylvania, ended June with 2.34 months of surplus on hand, and it wants to have 2.5 to four months of surplus available to pay for medical claims and administrative expenses, John Brouse, the company’s president, testified today at a Pennsylvania Insurance Department hearing.

Highmark must remain financially strong to cope with the current economy, Brouse said, according to a prepared version of his remarks.