The lawsuit alleges Regence is not fulfilling the public-purpose clause of its bylaws, which requires the company to use any excess funds for the benefit of its members.
The lawsuit also alleges Regence maintains four months of operating expenses, rather than following the practices of other Blue Cross nonprofit insurers of only maintaining three months of operating expenses.
Regence said the lawsuit is meritless. The company said it has always put its members first, and that it will continue to do so in the future and while defending against these allegations, according to the report.
Regence also said its reserve levels are appropriates and that its executive salaries are a tiny fraction of its overall expenditures.
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