White Pledges Hearings on UPMC-Highmark Dispute

Banking and Insurance Committee to review facts, define state role

Senate Banking and Insurance Committee Chairman Senator Don White today announced his committee will begin scheduling public hearings on the issues recently brought to light between UPMC and Highmark. The purpose of the hearings will be to review the dispute and determine what, if any, regulatory role Pennsylvania has over the battling parties.

"Since this battle involves the dominant health care provider and the dominant health care insurer in the region, each move and every statement by either party has a ripple effect that impacts millions of people in western Pennsylvania," Senator White said. "The posturing, while typically a normal part of business negotiations, has caused serious anxiety and unease among consumers. The decisions made by these two entities impact healthcare in western Pennsylvania to a degree unrivaled by any other. Therefore, the Banking and Insurance Committee should fully vet these issues in impartial, public forums to educate the public and determine the appropriate role for the Commonwealth going forward."

Highmark and UPMC have been at odds over their service reimbursement contract which is set to expire on June 30, 2012. If the contract is not renewed, about 2,700 doctors in the UPMC system would be considered "out-of-network" for Highmark, which provides insurance coverage for about 3 million people in western Pennsylvania.

Tension between the parties further escalated when Highmark announced plans to invest in West Penn Allegheny Health System -- UPMC's primary competitor in the region -- and filed a lawsuit against UPMC's "Keep Your Doctor" ad campaign.

The two main issues to be discussed during hearings are distinctly separate from a regulatory perspective, but intimately related, Senator White said. "I expect the hearings will explore both the contractual impasse between UPMC and Highmark as well as Highmark's proposed acquisition of the West Penn Health System.

"Competition among both insurers and providers is generally healthy for the marketplace and ultimately consumers," Senator White continued. "However, the disagreement between Highmark and UPMC impacts so many other businesses and individuals that it is important for legislators and the public to receive more information about the various issues on the table. I am fully confident (state Insurance) Commissioner (Michael) Consedine will take every necessary step to protect the consumer and I support his efforts. I also believe an impartial discussion in a public forum will provide greater transparency and a better understanding of the long-term impacts of the disagreement."

Times, dates and locations of the Banking and Insurance Committee's hearings will be announced once they have been finalized, Senator White said.

CONTACT:

Joe Pittman
(724) 357-0151