Senators eye savings from Blues merger

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

If Independence Blue Cross and Highmark Inc. want their proposed merger to go through, they had better make sure that Pennsylvania lawmakers get a say in how the two nonprofit organizations spend any savings from the deal.

That was the message delivered clearly yesterday to Kenneth R. Melani and Joseph A. Frick, the chief executive officers of Highmark in Pittsburgh and Philadelphia's Independence Blue Cross, at a hearing before the state Senate's Insurance and Banking Committee.

The savings the lawmakers were talking about was the $1 billion the two nonprofit health insurers would gain over six years through operating efficiencies, joint spending on new technology, and improved negotiating power.

"If you want to get more enthusiasm for this merger, a lot of...