September 25th, 2008

Today’s Philadelphia Inquirer features an op-ed by Tom Knox, a former Democratic candidate for mayor of Philadelphia, former CEO of UnitedHealthcare Pennsylvania, and planned candidate for governor of PA.

Among Knox’s points aruging against the merger of Independence Blue Cross and Highmark, Inc.:

- Pennsylvania already ranks near the bottom among all 50 states regarding competition among health plans offered to residents.

- Health insurance in Pennsylvania is more costly on average than almost anywhere in the nation. It is virtually unaffordable for many small employers and individuals seeking insurance on their own.

- In the Lehigh Valley, which has the most competition of any region in the state, the costs for premiums have been going down. The reason: This is the one part of the state where two of the Blues compete along with other health-insurance providers.

- Independence and Highmark and have virtual monopolies in their respective coverage areas. As a result, they have been able to bully hospitals and other providers into accepting extremely low payments for service.

Read his entire, detailed argument here.