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For Immediate
Release
4/03/07
CONTACT:
Joe Pittman
(717) 787-8724 or
(724) 541-0552 (cell)
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.
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