Blues Merger Oversight Bill Becomes Law
Gov. Ed Rendell has signed a law that includes an increase in state oversight of the proposed merger of Highmark and Independence Blue Cross (IBC).
Act 62 of 2008 includes language that authorizes the Pennsylvania Insurance Department to approve or reject the merger and allows the House and Senate insurance committees to weigh in on it as well. It also requires that any net economic benefits from the merger be held in a separate account.
The Blues merger oversight language was added to an unrelated bill that requires insurers to cover autism treatments. It also requires insurers to pay for colorectal cancer screenings for groups of more than 50 employees.
Legislation to increase state oversight of the merger was first introduced in the General Assembly in the summer of 2007.
A study commissioned by Capital BlueCross found that the consolidated company would hold a 70 percent market share, not the 53 percent that has been mentioned in the news.
The Pennsylvania Medical Society’s position has been that no merger should move forward until the benefits to patients and health care professionals are clearly demonstrated. In testimony at a July 10 public hearing in Harrisburg, State Society President Peter S. Lund, MD, reiterated this position.
Last Updated: 8/13/2008