Senator Don White, (R-41 and Chairman of the Senate Banking and
Insurance Committee) issued the following statement in response to the
announcement by Highmark Inc. and Independence Blue Cross (IBC) of their
decision to withdraw the companies' application to merge.
"For almost two years the Senate Banking and Insurance Committee
actively reviewed the merger proposal and received scant information and
testimony proving the merger between Highmark and Independence Blue Cross (IBC)
would have substantially benefited the citizens of Pennsylvania.
"In fact, by a bipartisan vote of 10-4 the committee concluded the
preponderance of testimony and facts presented over the last two years showed
the merger would have substantial and serious negative consequences on both the
availability and affordability of health care insurance for consumers across
Pennsylvania.
"Today is a great day for Pennsylvania consumers and the health
insurance marketplace across the state. The withdrawal of this proposed merger
maintains the existing level of competitiveness in Pennsylvania's health
insurance market which benefits consumers and health care providers by ensuring
some balance is maintained on controlling premium costs and maintaining the
quality of care provided.
"The decision by Highmark and IBC to pull the plug on the merger
proposal clearly demonstrates the review process established by the legislature
worked and state oversight was essential. The nearly two-year vetting process
undertaken by the Senate Banking and Insurance Committee brought essential
transparency to the process and – unlike the expeditious federal review – was
well above a shallow review and simple rubber stamp. Regardless of my
colleagues' views of the merger proposal, they were dynamic in the deliberation
process and I believe these efforts made sure the merger received a full and
thorough review by the legislature. Moreover, I hope this process established a
model for review of future consolidation proposals in Pennsylvania and across
the nation.
"Certainly I would also like to commend Commissioner Ario for his due
diligence throughout this lengthy and sometimes contentious process. This was a
true baptism by fire and Commissioner Ario kept the best interests of
Pennsylvania's consumers at the forefront during the deliberation and review
process.
"While we close this chapter, there is still much work to be done to improve
the health insurance marketplace and health care in general in Pennsylvania.
Those conditions are still far from optimum and the withdrawal of this proposed
merger has only kept it from getting worse. The long-term goal of the General
Assembly must be to establish and foster an environment which encourages other
insurers to enter the marketplace and provide real choice to consumers. This is
my top legislative goal during the 2009-10 Session."
