September 1, 2010                                          Contact: Rob Horowitz

 Steve Archambault, Democratic candidate for Attorney General, today called on Blue Cross to submit to a forensic audit to ensure state regulators and rate payers have a complete, accurate, detailed and thorough picture of its finances. The candidate made his remarks at a media conference held next to the Blue Cross building

“In just two years, Blue Cross has raised its premiums nearly twenty percent and that is simply unaffordable and unacceptable. As Attorney General, I will bring a tough new approach and that begins with the performance of an independent forensic audit,” Archambault said.

 “Our state is attempting to recover from its most difficult economic situation in a generation. These double-digit rate hikes are creating serious economic hardships for already financially squeezed Rhode Islanders. These hikes are stretching family budgets and making it more expensive for businesses to hire new employees,” Archambault noted.

 Pointing to a study conducted by Health Insurance Commissioner Chris Koller’s office that ranks Blue Cross’ administrative expenses higher than the New England average, Archambault noted that all expenditures by the health insurer must be subjected to strict scrutiny.

Archambault pointed to the more than $900,000 in compensation the CEO of Blue Cross earned in 2008 and Blue Cross’ $125 million new headquarters occupying prime real estate in Providence as examples of Blue Cross’ questionable fiscal practices.  He noted that Blue Cross is a non-profit.

A forensic audit is a more robust and detailed examination of all the financial aspects of a company, non-profit, government agency or program. It is designed to identify any irregularities and can be used in a court of law or at rate hike hearings, if needed.

“The results of a forensic audit will arm the Attorney General with the information needed to better combat future Blue Cross rate hike proposals and will provide the blueprint needed for a more cost-effective approach,” Archambault concluded. 

Senator John Tassoni called on the State to conduct a forensic audit of Blue Cross this past Spring.

 Steve Archambault, who serves as a Councilman in Smithfield , would bring a broad legal background to the Attorney General’s office. His experience as a police officer, local Prosecutor and defense attorney gives him a first-hand understanding of all the major elements of the criminal justice system.

 To learn more about Steve Archambault and how he will serve the people of Rhode Island as our next Attorney General, visit www.archambaultforattorneygeneral.com