For Immediate Release
March 23, 2007
Contact:
Joe Pittman
(717) 787-8724
(724) 541-0552
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Senate Will Study Proposed Blue Merger

Senator Don White wants public hearings on proposal

Reacting to today's news of the proposed mega-merger of Highmark Inc.(Highmark Blue Cross and Blue Shield) and Independence Blue Shield, Senator Don White, Chairman of the Senate Banking and Insurance Committee, said he's planning to study the proposal and will likely call a public hearing for his committee to study the merger's ramifications on health care in the Commonwealth.

"We are talking about the potential joining of the largest health care insurance company in Western Pennsylvania with that of the largest insurer in Southeastern Pennsylvania which raises a number of very serious questions," Senator White said.

"Primarily, we have to be concerned that this merger could create a single, multi-billion dollar, mega-entity which would crush what little competition remains in Pennsylvania's health care insurance market," Senator White continued. "Right now, the last thing we need in the Commonwealth, and in the nation, is further limitation on the competitiveness in the health care insurance market. There are real concerns that costs will skyrocket, quality of care will decrease and the insured will be stuck with the bill.

"I believe the Senate Banking and Insurance Committee should hold public hearings to discuss this proposal, as well as the future of the health care insurance market.  As legislators, we need to be educated so we can better inform the people of the Commonwealth about this proposed merger."

Senator White is the prime sponsor of Senate Bill 550, legislation that would give the Pennsylvania Department of Insurance oversight power over mergers involving non-profit health care insurers such as Blue Cross and Blue Shield. The Department already has oversight power over mergers involving for-profit companies.

"The Commonwealth must support policies that encourage and promote competitiveness in the health care insurance market." Senator White said. "Giving the Department oversight power is an important step in ensuring that mergers of these companies don't result in a virtual monopoly in the industry."