Hearing called on Blue Cross-Highmark merger plan

Executives from Independence Blue Cross and Highmark Inc. at a public hearing in Philadelphia on Monday will answer questions about the effect of the proposed merger of the state's two largest health insurers.

Sen. Arlen Specter (R., Pa.) today asked the two companies' chief executives, Joseph A. Frick of Independence and Kenneth R. Melani of Highmark, to detail how the combined business would achieve the estimated $1 billion in savings and also how they would allocate those savings.

The companies have promised to expand health benefits for the uninsured and to hold the administrative portion of insurance premiums steady. They have also said they'll be able to achieve savings in pharmaceutical costs.

Specter, the chairman of the Senate Judiciary Committee, also wants the companies to address concerns by doctors and hospitals that the combined companies would have too much bargaining power in negotiations over reimbursement rates for services, such as doctors' visits and hospital stays.

Specter's fellow Pennsylvania senator, Democrat Bob Casey, also will preside over the hearing.

It will take place at 9:30 a.m. at the National Constitution Center, 525 Arch St.

Others expected to testify include Pedro Rodriguez, executive director of the Action Alliance of Senior Citizens, and Roger Mecum, the chief executive of the Pennsylvania Medical Society.

The planned merger was approved last week by the boards of both companies but needs approval from state and federal regulators.