August 4th, 2008

In an editorial published today, the Delaware County Daily Times does not seem too thrilled about the possibility of a merger between Highmark Inc. and Independence Blue Cross.

A few choice excerpts:

Quoting a senior fellow at American Progress, David Balto: “Besides mergers, the [U.S.] Justice Department has not brought any cases challenging anti-competitive or exclusionary conduct by health insurers, even though numerous private plaintiffs and state attorneys general have challenged this type of conduct. In effect, the insurance companies have gained a newly found ‘antitrust immunity’.”

“At this point, insurance premiums are so high millions of consumers and many businesses cannot afford them. The number of uninsured Americans, including Pennsylvanians, has reached such levels state and federal officials have even begun to notice. Balto’s testimony put the number at 47 million or one out of every seven Americans under the age of 65.”

“With 400 mergers in the last 10 years, has anyone noticed any benefit to consumers? Have premiums been reduced? Have procedures and medicine coverage increased? Statistics indicate premiums have skyrocketed, increasing more than 87 percent over the past six years.”
“So, Pennsylvanians can decide. Taxpayers could weigh in on the discussion by contacting Specter on the Senate matter or Pennsylvania representatives to influence the insurance department review. Or they could believe the executives of a new, almost monopolistic company, will reduce premiums to consumers when they save $1 billion over the next six years.”

See the entire editorial online.