For Immediate Release
April 3, 2007
Contact:
Joe Pittman
(724) 357-0151
(724) 541-0552 (cell)
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Senator White to Testify on Proposed Blue Merger

U.S. Senate Judiciary Committee to hold hearing on April 9 in Philadelphia

State Senator Don White, author of Senate Bill 550, legislation which would give the Pennsylvania Department of Insurance oversight power over mergers involving non-profit health care insurers, will testify at a hearing by the U.S. Senate Judiciary Committee on the proposed merger of Highmark Inc. (Highmark Blue Cross and Blue Shield) with Independence Blue Cross (IBC).

U.S. Senator Arlen Specter, Ranking Member of the Judiciary Committee invited Senator White to speak at the hearing set for 9:30 a.m., April 9, in the Kirby Auditorium of the National Constitution Center in Philadelphia.

"I am extremely honored to be invited by Senator Specter to testify at this important public hearing," said Senator White, the Chairman of the (State) Senate Banking and Insurance Committee. "I applaud Senator Specter for scheduling this event, which shows he is aware of the potential implications of this proposed merger. I look forward to providing the Judiciary Committee with a perspective from the state government level and the concerns I have about the impact this deal could have on the availability and quality of health care coverage in Pennsylvania."

The Pennsylvania Department of Insurance already has oversight power over mergers involving for-profit companies. Senator White's SB 550 would bring deals involving health service plans under the same standards of the Holding Company Act. If enacted into law, Senate Bill 550 would apply to any merger established on or after January 1, 2007, so passage of the legislation would ensure a state Department of Insurance review of the proposed Highmark-IBC merger.

Senator White said the long-term ramifications of a mega-merger of the two largest health care insurers in Pennsylvania could impact the quality and availability of health care coverage in the Commonwealth.

"Primarily, we have to be concerned  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 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.