June 25th, 2008

CEOs Kenneth Melani of Highmark Inc. and Joseph Frick of Independence Blue Cross believe a merger of their organizations would give them the “geographical, financial and membership size to compete against even bigger for-profit insurers,” reports the Pittsburgh Tribune-Review.

The two CEO’s are preparing for public hearings on the merger in Philadelphia, Harrisburg and Pittsburgh in an attempt to get state Insurance Department approval of the merger.

“We’re two Pennsylvania-based companies that want to be better at our business, to be more efficient, to better serve our customers and members,” Frick said. “The current health care system just isn’t sustainable.”

If the merger is approved, the new, unnamed company would become the state’s largest health care insurer and have dual headquarters in Pittsburgh and Philadelphia.  Melani would be named the CEO while Frick would be the president and chief operating officer.

The two men hope a decision on the merger is made by the end of the year.