In the News: Merging Pennsylvania Insurers Face Scrutiny at Hearing

Executives at Blue Cross and Highmark, which have a proposed merger that would make them the largest insurer in Pennsylvania, faced questioning during a hearing concerning negotiating tactics and leverage if the merger is approved, according to The Philadelphia Inquirer.

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The executives have indicated that they will not use their market clout to push around physicians and organizations during negotiations.

The head of the Pennsylvania Medical Society questioned the legitimacy of this claim during his testimony, and the Pennsylvania insurance commissioner also questioned the executives about competition issues.

The executives pointed to growth of competitors in the state, and the president of a cleaning services company that works with Highmark expressed concern that large out-of-state insurance companies could potentially acquire the insurers if the merger doesn’t go through, as reasons for approving the merger.

Read The Philadelphia Inquirer story.

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