Report: Blues merger would save money, but competition saves even more

0 Comments | Philadelphia Inquirer, The, September, 2008 | by Jane M. Von Bergen Inquirer Staff Writer

Independence Blue Cross and Highmark Inc. promise that their proposed merger would benefit the public to the tune of more than a billion dollars in six years. But if Pittsburgh's Highmark entered the Philadelphia market as a competitor to Independence Blue Cross, rather than a collaborator, insurance customers and health-care providers would benefit even more.

That is the conclusion of a consultant hired by the Pennsylvania Insurance Department to evaluate the merger based on its effect on competition - a key regulatory issue. Highmark said it wouldn't happen. Now it will be up to Insurance Commissioner Joel Ario to judge how likely it is that Highmark would march east to compete against Independence Blue Cross if he rejects their plan to merge. "There are reasons to...