Highmark Merger Called Off
The proposed mega-merger between Pittsburgh-based Highmark Inc. and Philadelphia's Independence Blue Cross is off.
The two companies announced today that they have withdrawn their applications to the Pennsylvania Insurance Department to merge.
The decision that came following a meeting this morning between the two boards that operate the insurers. The merger would have created the largest health insurer in the state and one of the largest in the country, and was controversial for that reason -- opponents said the merger would squash competition.
The Philadelphia Inquirer reported that the merger is off because the state insurance department, which was set to rule on the merger proposal as early as next week, "would have allowed them to merge, but would require them to give up the right to use the popular Blue Cross trademark in selling health insurance."
Instead, according to the paper, they would have been permitted to use only the "Blue Shield" portion of the trademark, which would have left the door open for another health insurer to compete statewide using the "Blue Cross" trademark.
More details in tomorrow's Post-Gazette.
