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Until nearly two years ago, Capital Blue Cross and Highmark, formerly Blue Shield, operated in tandem in the 21-county Central Pennsylvania region that included the Lehigh Valley.
Capital Blue Cross products covered hospitalization and other facilities; Highmark products covered physician services. Together, they covered 1.2 million people. Their jointly operated HMO, Keystone Health Plan, covered another 200,000 people.
The two Blues plans parted ways in April 2002, and so all those members had to choose coverage from Capital or Highmark or another competitor. Capital eventually won the Keystone Health Plan, and Highmark introduced its HealthGuard HMO in this area.
Many believed the split of the Blues after many years would increase competition, which would, as always, be good for the consumer. Has it been? The answer depends on whom you ask.
Charles Inlander, president of the Peoples Medical Society, a national consumer health group based in Fogelsville, says the split has been very good for employers.
"I think it's been very positive for the Lehigh Valley and its business community because they now have multiple choices in Blues, as well as other alternatives such as Aetna and Cigna," he says.
However, Catherine Gallagher, president of the Lehigh Valley Business Conference on Health Care, an employer coalition serving the Allentown, Bethlehem, Easton and Reading areas, doesn't believe there's been much change either way.
"I think that there was a lot of hoopla when this happened, but now the dust has settled, and I haven't seen it bring a lot more...