Comment Period Open for "Blues" For-profit Subsidiaries

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) is now open and Senator Don White, Chairman of the Senate Banking and Insurance Committee, is strongly encouraging interested parties to submit their concerns to the state Department of Insurance.

"This is a massive proposal, the scope of which will 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."

Acting Insurance Commissioner Randy Rohrbaugh announced on April 27 that Independence Blue Cross 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 includes:

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."

The comment period will continue until at least July 11. 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

"Now that the merger papers have been filed with the Department of Insurance 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."

Under current state law, Department of Insurance approval is only required for mergers involving for-profit companies, which could includes many of the Highmark and IBC subsidiary entities. The merger of the parent non-profit companies does not currently require state approval under state law.

Senator White is the prime sponsor of Senate Bill 550, which would require state approval of non-profit health insurance companies. That bill was approved by the Senate in March. A companion piece, HB 112, was approved by the House last month and reported out of Senator White's Banking and Insurance Committee on May 2.

Contact:

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