Washington, DC, sues CareFirst, says provider must donate millions

Washington Post, June 25, 2008

Washington, DC, has launched a subpoena-powered investigation and a lawsuit that asserts the nonprofit CareFirst BlueCross BlueShield is obligated to donate millions to the community. Authorities in Washington, DC, and Maryland have criticized CareFirst BlueCross BlueShield in the past for hoarding its annual surpluses despite its federal charter as a "charitable and benevolent institution." Animosity between officials and the insurance provider intensified of late because CareFirst did not participate in a universal healthcare program that was counting on it for an annual $5 million contribution.