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Blue Cross of Vermont pushed close to regulatory danger in 2024; company and regulators say 2025 progress is stabilizing
Summary
Testimony to the legislature and DFR reports show Blue Cross Blue Shield of Vermont fell from an RBC level in the 600s (2021) to a reported ~214% at the end of 2024 and relied on a $30 million surplus note from Blue Cross Blue Shield of Michigan; company leaders say 2025 yields a $47 million gain through September and other steps that materially strengthened reserves, but DFR urges sustained, multi‑year restoration and continued oversight.
Blue Cross Blue Shield of Vermont reported significant financial stress in 2024 driven by unexpectedly high medical cost trends, and the insurer and state regulators told a legislative Health Care committee on Jan. 9 that the carrier has taken steps to restore reserves but remains below long‑run comfort levels.
Nolan, the author of a Joint Fiscal Office issue brief on insurer solvency, walked lawmakers through how regulators use risk‑based capital (RBC) to flag companies that need corrective action. Nolan noted Blue Cross’s publicly reported RBC was about 607% in 2021 and dropped to about 214% at the end of 2024; he said that without a $30,000,000 surplus note from Blue Cross Blue Shield of Michigan the company’s RBC “would have been at 104%,” a level ‘‘basically borderline of regulatory having to assume control.’’
Ruth Green, chief financial officer of Blue Cross of Vermont,…
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