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The state House Insurance Committee urged approval of the merger of Highmark Blue Cross Blue Shield and Blue Cross of Northeastern Pennsylvania as early as next month or risk delaying the proposed benefits until 2017.
In a letter dated Feb. 2, the committee’s leaders sent a letter to Teresa Miller, commissioner of the Pennsylvania Insurance Department, expressing their support of the deal.
The merger announced in February 2014 would expand the market for Pittsburgh-based Highmark, the largest of the state’s four nonprofit Blue Cross providers and one of the largest health insurance companies in the country. BCNEPA, the smallest of the four, had been searching for a partner to survive in the changing health care industry.
In hearings and a comment period the public has had input on the deal that’s been touted as plus for BCNEPA customers who will have access to new products and services.
Plans include maintaining regional operations in BCNEPA’s service area and local staffing levels. Employees would be guaranteed jobs for 18 months at the time of the approval. Beyond that a number of positions would be guaranteed for four years.
The new company would provide up to $100 million through a charitable foundation for health and wellness and economic development in the region.
State representatives Tina Pickett, R-Bradford County, committee majority chair, and Anthony DeLuca, D-Allegheny County, minority chair, said in their letter that although the committee has legal power to hold a meeting to review the application it did not intend to do so.
“We understand that with the current timeframes the merger cannot receive final approval until, at the earliest, sometime in late May of 2015,” they said in the letter.
They urged prompt action, saying “if the May 2015 approval is further delayed, the citizens of Northeastern Pennsylvania may have to wait until 2017 to see any of these potential plan benefits. Such a further delay would be unfortunate and may be detrimental to the citizens and health care consumers in the region.”
Ali Fogarty, a spokeswoman for the Insurance Department, Friday could not provide an approval date.
“This time frame is an estimate, as described in the letter. The process is on-going and we cannot assign a timeline until the department’s approval process is complete,” she said.
Spokesmen for the companies said they are awaiting the department’s approval.
“Everything continues to be on target,” said Highmark’s Aaron Billger.
“We are pleased that the review process for BCNEPA’s proposed merger with Highmark is moving forward,” added Anthony Matrisciano of BCNEPA.