January 21st, 2009

Reported the Philadelphia Inquirer around 12:30 p.m.:

Independence Blue Cross is withdrawing its request to merge with Highmark Inc. in Pittsburgh, according to sources on the Independence Blue Cross board and in Harrisburg.

The boards of Independence Blue Cross and Highmark met this morning and decided to withdraw their application. They will make a joint statement this afternoon.

Their decision comes days before the state’s insurance department was set to render a decision on their merger.

That’s because the decision, expected Jan. 28, was not likely to please the companies, sources said.

The decision 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, they could use the “Blue Shield” trademark, opening the door for another insurance company to compete statewide using the “Blue Cross” trademark.

When that idea had been suggested during public hearings in July, executives from the companies were vociferously opposed. The merger would have created the largest health insurer in the state and among the largest in the nation.