August 1st, 2008

Senator Arlen Specter, R-PA, voiced his concern Thursday over the proposed merger of Highmark Inc. and Independence Blue Cross.

“The question on my mind is how much of this billion dollars that you’re going to save over the six years is going to go into reserves and how much is going to go to reduce premiums,” Specter said. “I think if you talk about reduced premiums, you have a much more attractive proposition.”

Sen. Specter’s comments came during a U.S. Senate Judiciary subcommittee hearing on the proposed health insurance merger.  Witnesses from the American Medical Association and the Hospital and Healthsystem Association of Pennsylvania also voiced opposition to the merger.

The proposed merger would create the third largest health insurer in the United States insuring 7 million people.

Check out the Associated Press report for more information on the hearing.