State Senate takes up issue of Highmark, IBX merger
Wednesday, October 8th, 2008
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Transcript:
If the merger is approved, the company would insure more than 8 million Pennsylvanians – that's 73-percent of the market. Highmark President and CEO Kenneth Melani says that would benefit state residents.
Melani: Competition is good, but sometimes too much competition isn't good. Too much fragmentation on the health insurance side leads to more market power by hospitals and physicians. If that market power leads to increases in costs, that's not good for consumers.
State Senator Jake Corman says he's concerned about decreasing competition.
Corman: It just scares me that, again, in 20 years from now, what's this place, Pennsylvania, going to look like as far as health insurance opportunities for the citizens of Pennsylvania. And your size scares me.
The state insurance department makes the final decision.
Previous coverage of this story:
Salaries for merging insurers
Specter hears insurance debate
Insurance debate comes to Philly
Insurance merger debated
