Highmark-Independence Blue Cross Merger Raises Concerns from Physicians
Philadelphia-based Independence Blue Cross and Pittsburgh-based Highmark on March 28, 2007, announced plans to merge, creating the largest health insurance entity in Pennsylvania and one of the largest in the country.
“The Pennsylvania Medical Society has always expressed concerns over such mergers,” said Mark A. Piasio, MD, MBA, president of the Pennsylvania Medical Society. “We believe that any merger should, first and foremost, be in the best interest of patient care.”
In trying to determine if a Highmark-IBC merger would benefit health care, the Pennsylvania Medical Society has met with the chief executive officers of both companies and is continuing a dialogue with each company to further investigate the situation and how it will impact patient care.
Due to the size of this merger, the State Society is also seeking to determine if it would somehow limit competition in the market place by discouraging other health insurers from entering the Pennsylvania market.
Furthermore, the State Society supports Pennsylvania Senate Bill 550, which was introduced by Senator Don White and would give the Pennsylvania Department of Insurance oversight power over mergers involving non-profit health care insurers such as Blue Cross and Blue Shield.
“The Pennsylvania Medical Society believes that no merger should move forward until the benefits to patients and health care professionals are well defined,” Dr. Piasio said. “Until that is determined, the Pennsylvania Medical Society will closely monitor the proposed merger and articulate our concerns.”
Last Updated: 7/17/2008