Comment period open for “Blues”
 for-profit subsidiaries
 

Sen. Regola urges submission of concerns to Insurance Department

The public comment period on the proposed merger of the for-profit subsidiaries of Highmark, Inc. and Independence Blue Cross (IBC) is now open and Senator Bob Regola, Vice Chairman of the Senate Banking and Insurance Committee, is strongly encouraging interested parties to submit their concerns to the state Department of Insurance.

“Thousands of policyholders will be impacted by this merger and I hope they will take the time to look at the filings submitted by Highmark and IBC in regard to their for-profit subsidiaries and send their comments to the Department of Insurance,” Senator Regola said.

Acting Insurance Commissioner Randy Rohrbaugh announced on April 27 that Independence Blue Cross and Highmark Inc. had filed papers with the Department of Insurance seeking approval of proposed changes in control of their insurance company for-profit subsidiaries upon the consolidation of the two non-profit parent companies.

The for-profit subsidiaries involved in the proposed merger include:

§         AmeriHealth HMO Inc.;

§         First Priority Life Insurance Company, Inc.;

§         Gateway Health Plan, Inc.;

§         HealthGuard of Lancaster, Inc;

§         HM Health Insurance Company d/b/a Highmark Health Insurance Company;

§         HM Life Insurance Company;

§         Highmark Casualty Insurance Company;

§         Highmark Senior Resources, Inc.;

§         HMO of Northeastern Pennsylvania, Inc. d/b/a First Priority Health;

§         Keystone Health Plan East, Inc.;

§         Keystone Health Plan West, Inc.;

§         QCC Insurance Company;

§         Region 6 RX Corp.;

§         United Concordia Companies, Inc.;

§         United Concordia Dental Plans of Pennsylvania, Inc.;

§         United Concordia Life and Health Insurance Company;

§         Vista Health Plan, Inc.

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.”

The comment period will continue until at least July 11. 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:

Robert Brackbill

Chief, Company Licensing Division,

Pennsylvania Department of Insurance,

1345 Strawberry Square,

Harrisburg, PA 17120

They may also be sent via fax: (717) 787-8557 or via e-mail: rbrackbill@state.pa.us.

Under current state law, Department of Insurance approval is only required for mergers involving for-profit companies, which could includes many of the Highmark and IBC subsidiary entities. The merger of the parent non-profit companies does not currently require state approval under state law.

Currently, there are two bills active in the General Assembly that would provide for state oversight of mergers involving the Blues: Senate Bill 550 and House Bill 112. Senate Bill 550 was approved by the Senate in March. House Bill 112 was approved by the House last month and reported out of the Senate Banking and Insurance Committee on May 2.

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Contact:           Tom Hower      (717) 787-6063