Ore. Suit Targets Nonprofit Insurer on Surplus and Salaries

Attorneys in Oregon have filed a class-action lawsuit against Regence BlueCross BlueShield, arguing that the nonprofit health-insurance provider is acting like a commercial company by maintaining a large cash reserve and paying high wages to top officials, The Oregonian reports.

The suit filed Friday in Multnomah County Circuit Court contends Regence is failing to use excess earnings to benefit policyholders and violating the public-purpose provisions in its bylaws. The insurer has built up reserves well in excess of state-set minimums and is carrying a $150-million surplus, according to the suit.

“They should do something to somehow use that money for their nonprofit mission,” said David Senoff, a Philadelphia-based lawyer who is assisting on the case. In a statement, Regence called the allegations “meritless” and said its practices “are rooted in always putting our members first and having the financial stability to meet their medical needs, now and in the future.”