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Wednesday, July 16, 2008

Blues merger won't benefit Pa.

Two reasons why I'm not sold on the merger of the Blues in Pennsylvania.

Independence Blue Cross and Highmark Blue Cross want to combine into one mega-insurance company that would cover 70 percent of all Pennsylvania residents. Call me old-fashioned, but I believe competition is a good thing. A monopoly is not a good thing.

Here's the two reasons I have a problem with the merger:

1) Gov. Ed Rendell supports the deal. That means it can't be good for Pennsylvania residents. Nothing Rendell backs (casino gambling, building stadiums for his rich friends in Philly, Hillary Clinton) is good for us.

2) Peter S. Lund, president of the Pennsylvania Medical Society, says the merger won't result in any significant benefits for Pennsylvania residents.

Read Lund's op-ed in The Philadelphia Inquirer.

The newspaper has also been covering hearings on the proposed merger.

Check out Administrator warns about insurance merger

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