STACK URGES PUBLIC TO COMMENT ON POSSIBLE HIGHMARK-IBC MERGER

PHILADELPHIA, MAY 24, 2007: The public comment period on the proposed merger of the state’s two largest health insurers — Highmark and Independence Blue Cross — is now open, according to state Sen. Mike Stack.

“This merger will have a major impact on the Blues’ members and employees, as well as healthcare facilities, drug companies and our state’s economy,” Stack said. “I encourage individuals to speak up and let your opinion be known.

“I’m pleased that Congress and my fellow lawmakers in Harrisburg are closely watching this process, but it’s imperative that the public weigh in, too,” he said.

Pittsburgh-based Highmark has more than 4 million members and 12,000 employees. Philadelphia-based Independence Blue Cross has 2.6 million members and 9,500 employees.
The comment period will continue until at least July 11.

Written statements must include your name, address and telephone number.
Statements may be sent to Robert Brackbill, Chief, Company Licensing Division, 1345 Strawberry Square, Harrisburg, PA, 17120.

Comments may also be sent via fax to 717-787-8557 or e-mail rbrackbill@state.pa.us

If combined, Highmark and IBC will have 53 percent of the state’s health insurance market.
Highmark and IBC contend that the merger will generate over $1 billion in savings and $650 million to cover uninsured Pennsylvanians. The merger will also allow the insurers to hold premiums steady for three years.

Additionally, the companies maintain that the merger will have a $4 billion positive impact on Pennsylvania’s economy.

They have also committed to extending their participation in the Community Health Reinvestment Agreement, in which the Blues give the state a percentage of their surplus for uninsured health care programs, including AdultBasic. The extension will extend their contributions to 2013.

However, witnesses at the April 9 U.S. Senate Judiciary Committee public hearing said that decreased competition would reduce the bargaining power of doctors and hospitals for reimbursement, while not necessarily producing lower premiums or more coverage for the uninsured.

Also, during the hearing Lawton R. Burns, a University of Pennsylvania Wharton School healthcare economist, expressed skepticism that they proposed merger would reduce costs and benefit consumers.

####