The Department of Financial Regulation told the Senate Finance committee that Blue Cross experienced major underwriting and Medicare Advantage losses, prompting DFR actions to protect solvency. DFR recommended more regulatory tools; members debated whether appointing state members to the Blue Cross board or other governance changes would be effective.

DFR told the committee that solvency is the regulator’s chief consumer protection goal, recommended stronger monitoring and governance at Blue Cross, and outlined reinsurance and risk‑sharing options while cautioning reinsurance costs money and value‑based care or provider risk sharing may offer more sustainable relief.

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.