|
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.
 Print this page
E-mail
this page
|
