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Press Releases
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Press ReleaseHighmark and IBC CEOs Urge PA House Committee to Recommend Approval of Combination to the PIDCEOs say combination benefits ready to fund key health care technologies, spur economic growth Philadelphia, PA - November 12, 2008 - The chief executives of Highmark and Independence Blue Cross (IBC) today urged the Pennsylvania House Insurance Committee to recommend that the Pennsylvania Insurance Department (PID) approve their consolidation and allow the companies to unleash significant benefits for all Pennsylvanians. The CEOs pointed out that the two independent, expert financial and competition consultants retained by the Insurance Department, Blackstone and LECG, have examined the transaction and confirmed that it offers strong benefits for Pennsylvania. The CEOs made their comments at a roundtable discussion with other health care stakeholders that was open to the public and convened by the House Insurance Committee to discuss the proposed combination. Both CEOs also noted that the global economic downturn has already begun to have a significant impact on Pennsylvania, and brings greater urgency to moving forward with the transaction to create new jobs and help the state’s overall economy. Kenneth R. Melani, M.D., president and chief executive officer of Highmark, said, in part, “As two of the largest private employers in Pennsylvania, Highmark and IBC together account for over 18,000 jobs in the Commonwealth. By combining, we expect to generate new business that will help bring even more jobs to our state and stimulate additional opportunities for other Pennsylvania-based companies. The $1 billion in economic benefit that will be created through this combination is vital to helping sustain the economy of the Commonwealth, especially during these challenging times.” 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 that 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 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.” 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 and the transaction has been reviewed on 11 different occasions at 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.As one of the leading health insurers in Pennsylvania, Highmark Inc.’s mission is to provide access to affordable, quality health care enabling individuals to live longer, healthier lives. Based in Pittsburgh, Highmark serves 4.6 million people nationwide through the company’s health care benefits business. 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 CrossIndependence Blue Cross (IBC) is a leading health insurer in southeastern Pennsylvania. IBC and its affiliates provide coverage to nearly 3.4 million people nationwide. For 70 years, IBC has offered high-quality health care coverage tailored to meet the changing needs of members, employers and health care professionals. IBC is an independent licensee of the Blue Cross Blue Shield Association, an association of independent Blue Cross and Blue Shield Plans. |