Hints of Blues merger surface in Pennsylvania

Highmark and Independence Blue Cross discuss ways to capture "greater efficiencies."

By Myrle Croasdale, AMNews staff. Jan. 7, 2002.

Pennsylvania's two largest Blues plans -- Highmark Inc. and Independence Blue Cross -- are talking about a merger, according to local newspaper reports.

Highmark and Independence Blue Cross are meeting to discuss ways to save money through shared administrative arrangements, said Michael Weinstein, spokesman for Highmark.

"I cannot characterize the discussions as merger talks," Weinstein said. "What we can say is this. Highmark's plan is to talk with Blue Cross plans across the United States on a number of activities, to find ways to work together to achieve economies of scale and generate efficiencies for health care. Independence is just another plan we've been talking to."

Independence Blue Cross did not return phone calls, and the Pennsylvania Medical Society said it would wait for specifics on a potential merger before it could comment.

However, the idea of Highmark pursuing a Pennsylvania Blues plan has been broached before. A company spokeswoman in September said Highmark ended a 30-year partnership with Harrisburg-based Capital Blues because the company would not agree to be acquired. Highmark itself is the product of a 1996 merger between Pennsylvania Blue Shield and Blue Cross of Western Pennsylvania.

Weinstein said Highmark had no plans to convert to a for-profit entity. [...]