Proposed Health Insurance Merger
The Insurance Journal reports:
Pennsylvania’s two largest health insurers are in talks for a possible merger, according to a memo one of the companies’ chief executives sent to employees last Friday.
Joe Frick, president and chief executive of Independence Blue Cross in Philadelphia, said the company has been in talks with Highmark Inc. for the past year.
Next week, the boards of the two nonprofit health insurers will meet separately to “consider and vote on whether to combine the two companies,” Frick wrote.
What does this mean?
You guessed it!
A possible merger is a concern to small businesses, which have seen their medical premiums rise in recent years.
“It could lead to higher rates when you have fewer choices,” said Kevin Shivers, state director of the National Federation of Independent Business. “There is very little competition already.”
Of course, this is not a done deal…, yet.
Tax regionalization, higher health insurance premiums, a hike in the sales tax, gee, ain’t it all wonderful?