Comment Period for "Blues" Subsidiaries Extended

Sen. White urges submission of questions, concerns to Insurance Department

The public comment period on the proposed merger of the for-profit subsidiaries of Highmark, Inc. and Independence Blue Cross (IBC) has been extended and Senator Don White, Chairman of the Senate Banking and Insurance Committee, is again strongly encouraging interested parties to submit their concerns to the state Department of Insurance.

Former Acting Insurance Commissioner Randolph L. Rohrbach recently filed a notice in the Pennsylvania Bulletin announcing the "extension of the public comment period for an indefinite period of time to afford persons ample opportunity to provide written comments. A subsequent announcement will appear in the Pennsylvania Bulletin to provide notice of closing of the public comment period."

"I am extremely pleased that the Insurance Department lifted the July 11 deadline for receiving public comment on the proposed merger and the projected impacts on the for-profit subsidiaries. This is a massive proposal which could affect millions of individuals and thousands of businesses in Pennsylvania," Senator White said. "It is essential that those people and companies review the filings submitted by Highmark and IBC regarding their for-profit subsidiaries and submit questions, comments and concerns to the Department of Insurance."

The Insurance Department announced in April that IBC and Highmark Inc. had filed papers with the Department of Insurance seeking approval of proposed changes in control of their insurance company for-profit subsidiaries upon the consolidation of the two non-profit parent companies.

The lengthy list of for-profit subsidiaries involved in the proposed merger include:

AmeriHealth HMO Inc.;
First Priority Life Insurance Company, Inc.;
Gateway Health Plan, Inc.;
HealthGuard of Lancaster, Inc;
HM Health Insurance Company d/b/a Highmark Health Insurance Company;
HM Life Insurance Company;
Highmark Casualty Insurance Company;
Highmark Senior Resources, Inc.;
HMO of Northeastern Pennsylvania, Inc. d/b/a First Priority Health;
Keystone Health Plan East, Inc.;
Keystone Health Plan West, Inc.;
QCC Insurance Company;
Region 6 RX Corp.;
United Concordia Companies, Inc.;
United Concordia Dental Plans of Pennsylvania, Inc.;
United Concordia Life and Health Insurance Company;
Vista Health Plan, Inc.

The applications and related materials filed by IBC and Highmark regarding those for-profit subsidiaries are available for review on the Department of Insurance web site. Go to www.insurance.state.pa.us and click on "Highmark/IBC Filing."

Written statements must include name, address and telephone number of the person making the statement; identification of the application to which the statement is addressed; and, a concise and detailed narrative specifically identifying the basis of the statement. Statements should be sent to:

Robert Brackbill
Chief, Company Licensing Division,
Pennsylvania Department of Insurance,
1345 Strawberry Square,
Harrisburg, PA 17120

They may also be sent via fax: (717) 787-8557 or via e-mail: rbrackbill@state.pa.us

"It is essential that the appropriate oversight procedures take place," Senator White said. "All aspects of this mega-merger, involving so many for-profit subsidiary companies, must be transparent and fully subject to public review and scrutiny."

CONTACT:

Joe Pittman
(717) 787-8724
(724) 541-0552