Highmark Independence Merger www.EasyToInsureME.com

Highmark Inc. and Independence Blue Cross would pay their top executives as much as $4.2 million more if they are allowed to merge.

Kenneth Melani, the chief executive of Highmark, who is expected to have the same job at the combined companies, would get a 31 percent raise, to $3.9 million from $2.97 million, including incentives, according to documents filed with the Pennsylvania Insurance Department.

Independence Blue Cross’ CEO, Joseph Frick, who is slated for the role of chief operating officer after the merger, would earn $2.94 million, the same as his current pay. In 2006, Frick’s pay was $1.6 million.

State insurance regulators last summer demanded detailed information on how much top executives would be paid if the merger, which would create a $22.5 billion insurance giant, were approved.

The two biggest raises after Melani’s $930,000 are planned for Nanette DeTurk, chief financial officer, and David M. O’Brien, executive vice president for government services, both from Pittsburgh-based Highmark.

DeTurk, who is in line to be CFO of the combined entity, could get a $635,098 increase in total pay, which includes possible annual and long-term incentives. O’Brien, head of Medicare operations, would get a $556,184 raise under the plan.

Lance Haver, director of Philadelphia’s Office of Consumer Affairs, said the raises were another “indication that the Blues have lost their social mission and operate more like for-profit insurance companies.”

If the reason for the merger is “to better serve the public, then they don’t need to raise executive salaries like this,” he said.

The insurers have said that efficiencies from the merger, which would create the largest health insurer in state history and one of the largest in the nation, would spin off $1 billion in savings to benefit subscribers, the uninsured and other charities.

Part of the savings would come from the elimination of 745 to 1,200 jobs, the companies have projected.

Filings also showed the proposed senior leadership of the merged company. It gives a slight edge to Highmark, whose executives would hold nine of 17 positions.

State Insurance Commissioner Joel Ario said last month that his goal was to reach a decision on the merger by Dec. 31.

Blue Cross Pa www.EasyToInsureME.com

blue cross shield pa highmark ppo blue direct blue

Highmark is a health insurance company based in Pittsburgh, Pennsylvania, USA. It is the largest health insurer in Pennsylvania, and through a purchase in 1996, the largest health insurer in West Virginia. It primarily serves the western and central parts of Pennsylvania, some areas of eastern Ohio, and all of West Virginia, although it has recently purchased a 40% stake in the largest health insurer in northeastern Pennsylvania as well. It is currently one of the largest not-for-profit health insurers in the United States which owns several for-profit subsidiaries.

Highmark was created in 1996 by the consolidation of two Pennsylvania licensees of the Blue Cross and Blue Shield Association — Pennsylvania Blue Shield (now Highmark Blue Shield) based in suburban Harrisburg, and Veritus, a Blue Cross plan in western Pennsylvania (now Highmark Blue Cross/Blue Shield). The consolidated group now serves 50 of the state’s 67 counties. In West Virginia, the corporation took over the former Mountain State Blue Cross/Blue Shield. The new company based its head offices in Downtown Pittsburgh and features greatly expanded services.

There are several wholly-owned for-profit subsidiaries of Highmark. These include United Concordia Companies, Inc., a dental insurer, DVSC, Inc., provider of administrative services for group and individual vision care coverages, Davis Vision, a provider of managed care vision benefits, Viva, a designer and distributor of eyeglass frames and sunglasses, HM Insurance Group, a reinsurer providing stop-loss, limited benefit medical plans, worksite, life, disability, and administrative services, and Highmark Medicare Services, a division of Highmark which processes Part A and B Medicare claims.

Highmark is most notably mentioned for its Healthy High 5 Initiative – a pledge by Highmark of $100 million to help combat childhood obesity, and enable more individuals to live longer, healthier lives.

Highmark has consistently contributed charitably to organizations throughout the Commonwealth of Pennsylvania. Highmark awarded a $25 million pledge to the Penn State University so a new children’s hospital can be built in Hershey, Pennsylvania

On March 28, 2007, Highmark announced that it intends to consolidate with Independence Blue Cross of Philadelphia. The combination of these insurers would create a new company with over 18,000 employees, with dual-headquarters in both Pittsburgh and Philadelphia. The new company would have an economic impact of over $4 billion throughout the Commonwealth of Pennsylvania. If necessary regulatory approvals are achieved, Kenneth R. Melani would remain Chief Executive Officer of the new company, and Joseph A. Frick, Independence Blue Cross’s current President & CEO, would become the President & Chief Operating Officer. The merger is being organized by James M. Klingensmith, Sc.D., Executive Vice President of Health Services for Highmark. A determination has not yet been made as to the intended name for the combined entity.

story referenced from www.wikipedia.com

Keystone Health Plan East HMO www.EasyToInsureME.com

Blue Cross Pa Quotes Blue Cross Pa Plans Blue Cross Pa Rates

About Keystone Health Plan East HMO

Features of Individual HMO:

• premiums as low as $76 a month
• primary and specialist care
• emergency and urgent care
• prescription drug benefits
• birth control pills, annual OB/GYN exams, and mammograms;
• coverage for routine eye exams, eyeglasses, and contacts;
• value-added Healthy Lifestyles^SM rewards for fitness memberships, weight management programs, and smoking cessation programs;
• no claim forms to complete and convenient electronic referrals.

Highmark and Independence Blue Cross agree to combine www.EasyToInsureME.com

Blue Cross Pa View Blue Cross Plans & Prices

Highmark and Independence Blue Cross agree to combine

March 28, 2007 | Pittsburgh and Philadelphia, Pa. —

Combination will generate over $1 billion in economic benefits

The boards of directors of Highmark Inc. and Independence Blue Cross (IBC) announced today that they have approved an agreement to combine the two organizations. The new company, which will maintain dual headquarters in Pittsburgh and Philadelphia with regional presence and operating locations throughout the Commonwealth, will generate more than $1 billion in economic benefits to provide access to affordable, high-quality health care coverage for Pennsylvanians. Combining the substantial talents and resources of both organizations will also allow the new company to better serve its customers and providers and to help improve health care quality.

Kenneth R. Melani, M.D., president and chief executive officer of Highmark, said, “This combination is great for our customers, our providers, our employees, our communities, and for Pennsylvania. By bringing together the best practices of the two organizations, we will remain a Pennsylvania-based company and work to expand access to health care coverage, make health insurance more affordable and improve the quality of medical care and the overall health of the communities we serve.”

Joseph A. Frick, IBC’s president and chief executive officer, said, “The new company will continue to serve as an economic engine for Pennsylvania, employing approximately 18,000 people statewide and having an estimated $4 billion impact on the state’s economy. Together, we expect to generate new business that can create more jobs in Pennsylvania and stimulate additional business opportunities for Pennsylvania-based companies.”

The new, combined company will have the resources to:

• Hold administrative fees flat for two years resulting in direct savings to customers of $300 million
• Better manage prescription drug costs, which are expected to result in $280 million in drug cost savings for customers
• Provide over $650 million to help expand access to health insurance for Pennsylvania’s uninsured population.

In 2006, Highmark and IBC contributed over $200 million in support of the community primarily focused on health and education programs such as:

• Funding clinics for the uninsured
• Increasing the supply of nurses through scholarships
• Fighting hospital-acquired infections
• Helping eliminate disparities in health care
• Preventing childhood obesity
• Promoting community wellness through programs to address nutrition, weight management, smoking cessation, osteoporosis and heart disease.

The companies reaffirmed their commitments to the communities of Pennsylvania and said that they intend to enhance their support going forward.

Melani said, “The new company will continue the long-standing missions of Highmark and IBC of providing Pennsylvanians with access to high-quality, affordable health care coverage. The two companies are strongly committed to continuing health care programs that offer coverage to everyone in Pennsylvania, regardless of medical history, current health, age or gender.”

Frick said, “Our companies have been working closely together for more than 50 years and are unified in our underlying goal: to make health care coverage better and more attainable for all Pennsylvanians. By combining our two organizations, we will be better able to maintain affordable programs, meet shifting customer demands for new products and fund essential technological and infrastructure improvements in the face of challenges from much larger, for-profit out-of-state health insurance companies.”

Kenneth R. Melani, M.D. will be chief executive officer of the combined company. Joseph A. Frick will be president and chief operating officer. M. Walter D’Alessio, current chairman of IBC’s board of directors, will serve as chairman of the combined company’s board and J. Robert Baum, Ph.D, current chairman of Highmark’s board of directors, will serve as vice chairman of the combined company’s board.

In communications to employees of Highmark and IBC, Melani and Frick said, “It is through your hard work and dedication to our customers, and the communities we serve, that we have built two great companies. We look forward to working together to build an even better company.”

Formal filings for state and federal regulatory approvals will begin in April. Pending approval by regulatory agencies, the two companies will continue to operate as separate entities.

About Highmark Inc.
Highmark is a leading health insurer in the 49 counties of western and central Pennsylvania. The company provides health care coverage to 4.6 million people.

Highmark and its subsidiary companies also offer a wide range of employee benefit programs to customers in Pennsylvania and across the United States, including vision programs, dental coverage and other health insurance-related products.

To fulfill its corporate mission, Highmark contributes millions of dollars each year to help keep quality health care programs available to all segments of the community and to support community-based health and human services programs that work to improve people’s health and well-being.

Highmark’s consolidated balance sheet, capitalization and market position have been recognized by Standard & Poor’s and A.M. Best, which rated Highmark “A” (Strong) and “A” (Excellent), respectively, in 2006.

About Independence Blue Cross
Independence Blue Cross is a leading health insurer in southeastern Pennsylvania. Nationwide, IBC and its affiliates provide coverage to nearly 3.4 million people. For nearly 70 years, Independence Blue Cross has offered high-quality health care coverage tailored to meet the changing needs of members, employers, and health care professionals.

To fulfill its commitment to the communities and people it serves, Independence Blue Cross contributes millions of dollars each year to improve access to quality, affordable health care in the region by funding clinics for the uninsured, increasing the supply of nurses, fighting hospital-acquired infections, and promoting community wellness.

In 2006, Independence Blue Cross was nationally recognized by the Disease Management Association of America for Connections, its outstanding program that improves the health and wellbeing of people with chronic illnesses. Independence Blue Cross’s HMO and PPO health care plans have consistently received the highest ratings from the National Committee for Quality Assurance.

original story