A recent AMED NEWS report sheds light on the Pennsylvania Blues’ practice of maintaining significant cash reserves. These reserves are substantially higher than reserves of other insurers and in some situations, two and three times industry averages. The practice of maintaining such reserves is to the detriment of both the insured and physicians according to many physician groups. The article quoted Howard Richter, MD, president of the state medical society of Pennsylvania, who testified at the public hearing. Dr. Richter noted that “[i]deally, health insurers should have 30 to 60 days worth of expenses in reserve. The physicians of Pennsylvania would like to have increased payments for physicians and decreased premiums to patients. Any reserves that could be used to safely do that would be of benefit to the commonwealth" he concluded. The report noted that one of the Blues addressed in the report had reserves sufficient for over 300 days. For the entire report please go to www.ama-assn.org. Back to Newsroom