January 28th, 2009

Pennsylvania recently escaped a probable health insurance disaster, many agree, with IBC and Highmark withdrawing their request to merge.  However, the Philadelphia Inquirer reminds us today, PA is still stuck with a bleak health insurance market.

In an editorial published today, the Inquirer writes:

“Now that Pennsylvania officials have exposed the state as one of the least competitive marketplaces for health insurance in the country, they need to find ways to attract more insurers.

Consumers came away winners last week after the Independence Blue Cross and Highmark Inc. merger collapsed, but only because the deal would have worsened an already dismal competitive climate.

That still leaves individuals, businesses, doctors and hospitals beholden mainly to the two Blues that dominate the health-insurance market. So it’s good to see state Insurance Commissioner Joel S. Ario asking, in effect, what can be done to give customers more choices, and, it is hoped, keep a lid on the annual double-digit hikes in premiums.

…

Insurance reforms developed by the Senate Banking and Insurance Committee chaired by Donald J. White (R., Indiana) could enhance consumers’ choice and moderate premium increases. Lawmakers need to get to work on implementing the reforms that make sense. ”

Read the entire editorial at the Inquirer.