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For Immediate Release Senator White Questions Fed Approval of Blues MergerRegulators' review seemingly quicker than passport process Moving with astonishing speed, Federal regulators approved the merger of Highmark, Inc. and Independence Blue Cross (IBC), but state approval of the deal won't happen nearly as quickly, said state Senator Don White, Chairman of the Senate Banking and Insurance Committee. "The Feds may have approved the merger, but this deal is far from done," said Senator White. "In fact, I am extremely surprised -- even shocked -- that the federal regulators could complete their review of a deal that would create the third largest health insurance company in the nation in only six weeks, especially when it takes that long to simply get a passport. By comparison, the state Department of Insurance has indicated that it will take anywhere from a year to 18 months just to consider the merger of the for-profit subsidiary companies. " On May 22, the state Senate approved House Bill 112, legislation to provide state oversight of proposed mergers involving non-profit health insurance companies, and sent the amended bill back to the House for concurrence. While the Insurance Department would hold final approval -- or denial -- authority for a merger of non-profit health insurance companies, House Bill 112 also establishes an Insurance Restructuring Public Interest Review Board comprised of representatives from the Auditor General's Office, the Administration, and the four caucuses of the General Assembly, as well as a policyholder to provide recommendations to the Department. "The speed of this Federal approval further stresses the need for due diligence and thorough review of the merger by state regulators, which would be required with the enactment of House Bill 112 in its current form," Senator White said. Senator White would also like to remind the public that the comment period on the proposed merger of the for-profit subsidiaries is open until July 11. He is strongly encouraging interested parties to submit their concerns to the state Department of Insurance. 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:
They may also be sent via fax: (717) 787-8557 or via e-mail: rbrackbill@state.pa.us Contact: Joe Pittman | ||||
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