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For Immediate
Release
4/24/07
CONTACT:
Joe Pittman
(717) 787-8724 or (724) 541-0552 (cell)
Senator White Hails House Passage of Merger Bill
House Bill 112 mirrors
language of Senate Bill 550
Senator Don White, Chairman of the Senate Banking and
Insurance Committee, hailed today's passage of
legislation by the House of Representatives giving the
Pennsylvania Department of Insurance oversight power
over mergers involving health care insurers such as
Blue Cross and Blue Shield.
House Bill 112, which for the most part mirrors the
language Senator White included in his Senate Bill
550, is headed to the Senate for consideration. The
Senate previously passed SB 550 on March 28.
"We need to expeditiously continue the legislative
process and send a measure to the Governor, regardless
of whether it is in the form of a House Bill or a
Senate Bill," Senator White said. "I applaud the House
for taking action and look forward to reviewing House
Bill 112."
The bills were sparked by the proposed merger between
Highmark Inc. (Highmark Blue Cross and Blue Shield)
and Independence Blue Cross (IBC) announced last
month. The Department of Insurance already has
oversight power over mergers involving for-profit
companies. SB 550 and HB 112 would bring deals
involving health service plans under the same
standards of the Holding Company Act.
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.
"As I have said on several occasions, we must 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," 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."
HB112 also includes provisions that preserve the
Attorney General's authority regarding oversight of
charitable organizations and enforcement of federal
antitrust laws. It also establishes an eight-member
executive board consisting of the Attorney General,
the Secretary of Health, the Secretary of Public
Welfare, and appointees by the Governor and each of
the four legislative caucuses.
The board would be required to hold at least one
public hearing on the merger, consolidation, etc., of
a Blue Cross/Blue Shield plan and provide written
recommendations, approved by at least six of its
members, to the Insurance Commissioner.
In addition, HB 112 states that the Insurance
Commissioner could not approve the consolidation of a
Blue Cross/Blue Shield plan without the prior written
recommendation of at least six board members
authorizing the Insurance Commissioner's approval.
"I strongly support protecting and preserving in
statute the Attorney General's oversight powers,"
Senator White said. "I also look forward to reviewing
the language of the bill and the House proposal to
expand the regulatory oversight procedure and review
process. Such a proposal has much merit."
Senator White also mentioned the possibility of adding
additional oversight and consumer protection
provisions to HB 112.
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