Highmark says it will drop lawsuit against UPMC

Highmark spokesman Michael Weinstein said Thursday that the insurer will drop its federal lawsuit accusing UPMC of false advertising as part of the agreement extending the current Highmark-UPMC contract through 2014. Under the agreement in principle announced Wednesday, which Mr. Weinstein said will be formalized by June 30, he also confirmed that Highmark reimbursement rates to UPMC will go up and "there will be additional costs the community has to bear." Mr. Weinstein declined to give specific numbers on how much reimbursement rates will increase but said "they will be significantly below the 40 percent they demanded and they will be below what the commercial carriers are paying."