Pa. insurance bill proceeds despite veto threat

0 Comments | Philadelphia Inquirer, The, May, 2007 | by Jane M. Von Bergen Inquirer Staff Writer

A broadened version of a bill that would bolster the regulation of mergers of health insurers moved ahead in the legislature last week, even though Gov. Rendell has threatened to veto it.

The legislation has taken on urgency as Pennsylvania's Insurance Department must decide whether to approve the merger of Independence Blue Cross and Highmark Inc., a deal that would create the state's largest health insurer.

As the law stands now, the Insurance Department can approve mergers of their subsidiaries, but not of the parent companies.

On March 28, the same day that Independence Blue Cross and Highmark announced their deal, the Senate passed a bill giving the Insurance Department the authority to approve...