UPMC, Highmark officials air dispute to state Senate committee [Pittsburgh Post-Gazette]

Nov. 30--Highmark Inc. CEO Ken Melani told a state Senate committee this morning that rival UPMC shouldn't be allowed to "slice and dice the Highmark provider network" against the wishes of Western Pennsylvania customers and patients.

Dr. Melani was the first speaker at today's Senate Banking and Insurance Committee hearing in Oakland.

He also said that the state Legislature ought to change state law to force the insurer and hospital network to enter binding arbitration if they can't arrive at a new contract on their own.

The two health care giants are coming to the end of their 10-year contract. That contract is set to expire in summer 2012, and UPMC says it can't and won't sign a new deal now that Highmark is buying the region's No. 2 system, West Penn Allegheny Health System.

If the contract expires, many Highmark policyholders could be denied in-network access to UPMC doctors and facilities starting in 2012.

Rep. Tony Deluca, D-Penn Hills, told Dr. Melani and UPMC CEO Jeffrey Romoff, who is set to speak later today, that lawmakers are prepared to introduce new pieces of legislation if the two companies can't arrive at a deal.

"You will not like what you see," Mr. Deluca said.

In testimony submitted to the committee before the hearing, Mr. Romoff said that "Highmark's vision for providers can be summed up in one word: control. ... Highmark wants to -- indeed, needs to -- steer and tier consumers into its wholly owned subsidiaries."

Bill Toland: [email protected] or 412-263-2625

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