Pennsylvania Health Insurance Regulators Outline Condition for Independence Blue Cross/Highmark Merger
Posted Jan 22 2009 5:57pm
According to Jane M. Von Bergen and Angela Couloumbis of the Philadelphia Inquirer, Pennsylvania’s insurance commissioner has set a condition that must be met for the state to approve a merger of two major Pennsylvania health insurance companies: Highmark and Independence Blue Cross.
The deal will require that the combined company give up the right to the Blue Shield trademark, currently used by Highmark. They will be allowed to retain the use of the Blue Cross trademark, while the former could then be used by another competitor to market themselves statewide.
It is unknown whether the two companies would accept such a provision, say Jane and Angela. The state is mostly worried about the impact a merger would have on competition. This decision, rumored to occur next week, could jepoardize a merger that has been in progress since early 2007.