 |
 |
 |
 |
 |
 |
Press Releases
|
Press ReleaseHighmark and IBC CEOs Urge Committee to Recommend Approval of the Combination to the PIDCEOs Say Combination Represents Pathway to Change in Health Care System Harrisburg, PA - October 7, 2008 - The chief executives of Highmark and Independence Blue Cross (IBC) today urged the Senate Banking and Insurance Committee to recommend that the Pennsylvania Insurance Department approve the consolidation and allow the companies to unleash significant benefits for all Pennsylvanians. At a public hearing here today the CEOs also pointed out that the two independent, expert financial and competition consultants retained by the insurance department have examined the transaction and confirmed that it offers strong benefits for Pennsylvania. Kenneth R. Melani, M.D., president and chief executive officer of Highmark, said, in part, “We believe that the time has come for a decision to allow the new combined company — rooted in a strong commitment to the community — to harness the resources and talent of Highmark and IBC to achieve positive change that will benefit Pennsylvania. What we are simply asking for is the green light to deliver on our commitment to achieve significant operating efficiencies and important public benefits.” Dr. Melani continued, “Bringing our companies together will not lessen competition in commercial health insurance or reduce choice in any market in Pennsylvania. Our subscribers will continue to have the same wide variety of choice from a competitive health insurance market as they have today.” Joseph A. Frick, IBC’s president and chief executive officer, said, in part, “With the $1 billion in economic benefits this combination will yield, the new company can introduce innovations to help make the health care system in Pennsylvania more efficient and effective. The new company will use every penny of the $1 billion to execute its vision to improve the quality of health care, slow the growth of costs, and expand access. We are ready for action and we are passionate about the transformational potential here.” Mr. Frick continued, “By combining our resources, we expect to generate new business, which will help bring more jobs to Pennsylvania and stimulate additional business opportunities for Pennsylvania-based businesses, and increase our economic impact beyond $4.2 billion in the years ahead.” The proposed combination of Highmark and IBC was unanimously approved by the boards of both companies in March 2007. The companies submitted an extensive filing to the PID in April 2007, which was publicly aired on 10 different occasions in public hearings held at the state and federal level. Both Highmark and IBC supported legislation passed in July 2008 giving the Pennsylvania Insurance Commissioner direct authority over the combination and defining a role for the General Assembly in the review. The Department of Justice has twice cleared the proposed transaction under antitrust laws. About Highmark Inc. Highmark Inc. is an independent licensee of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield Plans. For more information, visit www.highmark.com. About Independence Blue Cross Independence Blue Cross is an independent licensee of the Blue Cross Blue Shield Association, an association of independent Blue Cross and Blue Shield Plans. |