March 28, 2007

Floor Remarks of Senator Don White

Senate Bill 550

Madam President, I rise today to ask for an affirmative vote on Senate Bill 550, which would give the Pennsylvania Department of Insurance oversight power over mergers involving non-profit health care insurers such as Blue Cross and Blue Shield.

Just this past week, we've learned of the proposed merger of Highmark Inc., which includes Highmark Blue Cross and Blue Shield the predominant health care insurance providers in Western Pennsylvania, and Independence Blue Shield, which is the major player in Southeastern Pennsylvania.

Unfortunately, this proposed merger, which involves multi-billions of dollars and potentially impacts the lives and well-being of hundreds of thousands of Pennsylvanians, is currently outside the purview of the Department of Insurance.

The Department of Insurance already has oversight power over mergers involving for-profit companies, but the Highmark-IBC deal, because it involves two non-profit organizations, does not fall under those guidelines.

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.

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.

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 workforce will be stuck with the bill.

Even so, as it stands now, Pennsylvania can not step in and review this proposed merger. That would change with the enactment of Senate Bill 550.

And, Madam President, it is important to note that the provisions of Senate Bill 550 are retroactive back to January 1, so passage of this legislation will ensure a Department of Insurance review of the proposed Highmark-Independence Blue Cross merger and any similar proposals that would arise in the future.

The Commonwealth must support policies that encourage and promote competitiveness in the health care insurance market. Giving the Department oversight power is an important step in protecting the quality of health care coverage available to all Pennsylvanians.

I ask for an affirmative vote on Senate Bill 550.

Thank you.