Navigation Links
Economist Finds Highmark/IBC Merger Would Result in 70 Percent Share in Pennsylvania, Far Higher Than Initial Reports
Date:7/8/2008

HARRISBURG, Pa., July 8 /PRNewswire/ -- An economist examining the proposed merger of Highmark, Inc. and Independence Blue Cross testified today that the combined companies would have a market share far greater than has been represented so far. According to testimony presented to the Pennsylvania Insurance Department today in Pittsburgh by a prominent economist, Dr. Monica Noether of CRA International, the proposed merger would result in a combined entity with more than 70 percent of the statewide health insurance market, even more than the substantial 53 percent share frequently cited in press reports and elsewhere.

The 53 percent share figure incorrectly includes a variety of insurance products that consumers do not view as substitutes for commercial medical insurance, such as Vision, Medicare, and Dental, and fails to include Highmark and IBC's sizable self-insured health business, which consumers do regard as substitutes, according to Dr. Noether, whose study was commissioned by Capital BlueCross. Focusing on both fully-insured and self-insured commercial health business in Pennsylvania, the merger would result in a combined entity with more than 70 percent of the statewide market. In other words, seven out of every 10 commercially insured Pennsylvanians would be covered by the merged company.

"When competitive entry is difficult, as appears to be the case in Pennsylvania, a single company with more than 70 percent of the market is likely to have the ability to exert market power, which means they possess the ability to profitably raise price or reduce quality, innovation or choice in ways that can harm consumers," Dr. Noether testified.

Additionally, Dr. Noether disagreed with the assertion by Highmark and IBC that their merger would not impact competition because they do not compete today. She noted that Highmark and IBC do not compete because they have chosen not to do so through a 10-year non-compete agreement that expired on the eve of their announced plan to combine -- and further that Highmark likely would compete with IBC, and thus enhance competition in Pennsylvania's health insurance marketplace, if the merger did not proceed.

"This proposed merger would mean a fundamental, long-term change in Pennsylvania's health care landscape, one that requires careful examination of its long-term impacts on consumers, providers and competition," said Anita M. Smith, president & CEO of Capital BlueCross. "That is why Capital BlueCross has commissioned CRA International to fully examine this important issue. As a noted economist who specializes in health care, Dr. Noether's findings will enhance this essential public dialogue and help public policymakers to determine appropriate conditions to assure a fair and level playing field in any post-merger environment."

A full copy of Dr. Noether's written testimony, along with all other publicly available documents from the consolidation proceedings, can be obtained from the Department's Web site at the following link -- http://www.ins.state.pa.us/ins/cwp/view.asp?a=1347&Q=547942&PM=1.

Capital BlueCross is an independent licensee of the Blue Cross and Blue Shield Association


'/>"/>
SOURCE Capital BlueCross
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Former Senate Majority Leader, Princeton Economist Joust on Future of Health Care
2. Consumer Group Finds Use of Outdated Data and Other Major Flaws in Economists Defense of Mandatory Purchase of Private Health Insurance
3. Doctors, economist, write prescription for protecting people from themselves
4. Research!America Honors Univ. of Chicago Economists for Study Showing Economic Impact of HIV/AIDS Drug Development
5. Kaiser Permanente Study Finds Keeping a Food Diary Doubles Diet Weight Loss
6. Kaiser Permanente study finds keeping a food diary doubles diet weight loss
7. New study finds coronary arterial calcium scans help detect overall death risk in the elderly
8. American Lung Association Report Finds Lung Disease Death Rates Increasing While Cancer, Heart Disease and Stroke Death Rates Are Decreasing
9. Improving university recruitment process may increase female surgical faculty, study finds
10. Study finds Childrens Hospital patient safety program improves caregiver/family communications
11. AMA Finds High Fructose Syrup Unlikely to Be More Harmful to Health Than Other Caloric Sweeteners
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:10/13/2017)... Vegas, Nevada (PRWEB) , ... October 13, 2017 , ... ... 7® Hemp CBD Oil utilizing Purzorb™ technology. Applying the Purzorb™process to full spectrum CBD ... dose required and providing a CBD form that can be easily incorporated into liquid ...
(Date:10/13/2017)... ... October 13, 2017 , ... Apple Rehab Shelton Lakes , ... mock evacuation of the facility as part of a disaster drill on October 3rd. ... EMS and Shelton City Emergency Manager, as well as the Connecticut Long Term ...
(Date:10/13/2017)... , ... October 13, 2017 , ... Ellevate Network, the ... business to advocate for action towards gender equality at their inaugural Summit in New ... the globe, and reached a social audience of over 3 million. To watch the ...
(Date:10/13/2017)... ... 2017 , ... Talented host, actor Rob Lowe, is introducing ... new episode of "Success Files," which is an award-winning educational program broadcasted on ... subject in-depth with passion and integrity. , Sciatica occurs when the sciatic nerve ...
(Date:10/13/2017)... ... 2017 , ... “America On The Brink”: the Christian history of the United ... the creation of published author, William Nowers. Captain Nowers and his wife, Millie, ... spent thirty years in the Navy. Following his career as a naval aviator ...
Breaking Medicine News(10 mins):
(Date:10/10/2017)... Calif. , Oct. 10, 2017  NDS received FDA 510(k) ... — a medical-grade battery-powered display stand specifically designed for endoscopy environments. ... transform technology into a clinical solution to support the improvement of ... Innovative Design ... Mobile Wireless Solution ...
(Date:10/5/2017)... ROSEMONT, Ill. , Oct. 5, 2017 /PRNewswire-USNewswire/ ... American Association of Oral and Maxillofacial Surgeons (AAOMS) ... than opioids – to be used as a ... post-surgical pain. ... relationship, the AAOMS White Paper "Opioid Prescribing: Acute ...
(Date:10/4/2017)... , Oct. 4, 2017 ... single-use, self-contained, illuminating medical devices, today announced regulatory ... Health Surveillance Agency (or Agência Nacional de Vigilância ... first single-use, cordless surgical retractor with integrated LED ... optimal access, illumination and exposure of a tissue ...
Breaking Medicine Technology: