Pennsylvania Senators Oppose Blue Cross, Highmark Merger

The Pennsylvania Senate Banking and Insurance Committee has recommended to the state’s insurance department that it deny the proposed merger between insurance providers Independence Blue Cross (IBC) and Highmark, according to a statement from Sen. Don White, chairman of the committee.

"The prevailing themes throughout the Banking and Insurance Committee's review were that the proposed merger would further restrict, if not completely eliminate, any remaining competition in Pennsylvania's healthcare insurance marketplace, while providing minimal – if any – tangible benefits for policyholders and/or providers,” Mr. White said in his statement.

The Republican-controlled committee voted 10-4 against the merger, mostly along party lines, reports the Associated Press (AP)/Philadelphia Inquirer.

The recommendation is non-binding. The committee offered a second recommendation that includes 11 conditions the new company should meet if the insurance department plans to approve the merger.

“Any approval must be contingent upon Highmark and IBC justifying beyond a reasonable doubt that this merger will provide meaningful and long-term benefits to the people they insure, the providers they reimburse and the healthcare interests of Pennsylvanians at large," Mr. White said.

The proposed merger was first announced in March 2007.

Read Mr. White’s statement about the recommendation from the Pennsylvania Senate Banking and Insurance Committee.

Read the Senate Banking and Insurance Committee’s recommendation against the Blue Cross and Highmark merger (pdf).

Read the Senate Banking and Insurance Committee’s second recommendation spelling out the 11 conditions for a Blue Cross and Highmark merger (pdf).

Read the AP/Philadelphia Inquirer report on the committee’s recommendation.