dc aplleseed solving dc problems

As you may already know from the Washington Business Journal report, DC Appleseed and residents of the National Capital area won a tremendous victory yesterday in the D.C. Court of Appeals. In its opinion, the court agreed with us that the D.C. Department of Insurance, Securities, and Banking (DISB) failed to follow the law when it found that CareFirst’s $687 million surplus was not excessive. As a result, the DISB must now conduct a new examination of the surplus—which has since risen to nearly $1 billion—and must do so following the law we helped the D.C. Council develop. That law requires CareFirst to engage in community health investment “to the maximum feasible extent.”

We expect that when the DISB applies the law consistent with the court’s ruling, it will order the company to direct hundreds of millions of dollars of its surplus toward reducing premiums for consumers and addressing the pressing healthcare needs of the region.  As Senior Judge Vanessa Ruiz confirmed in writing for the court, the DISB must keep in mind that the Council’s law “was designed primarily to enforce the obligation of the corporation to reinvest in community health to the maximum extent consistent with its financial soundness.”

We are also pleased that the court agreed with us that advocacy organizations like DC Appleseed must be fully and fairly included in administrative proceedings. The court rejected CareFirst’s contention that we had no standing and made clear that public interest organizations have a right to participate in administrative proceedings and appeal agency decisions when the public interest is at stake. 

We look forward to continuing to work with the DISB Commissioner, the Mayor, and the Council to make sure that the next surplus review follows the law. We also hope that that review is completed quickly. It’s been nearly four years since the Council passed the law protecting the public’s interest in CareFirst’s surplus, and it’s time to bring that law’s intended benefits to area residents.

This victory wouldn't have been possible without you. Please support our efforts to improve life in the National Capital area.

Sincerely,

Walter Smith
The DC Appleseed Center for Law and Justice, Inc.