Newspaper: Reject Blues merger

The Pittsburgh Post-Gazette is urging the Rendell Administration to reject a proposed merger of Pittsburgh's Highmark Inc. and Philadelphia's Independence Blue Cross.

Combined, the Blues cover 70 percent of Pennsylvania residents.

From a Post-Gazette editorial:

We aren't convinced that the merger would help patients who face escalating costs for premiums or make it easier for employers to negotiate improved coverage for their workers. In addition, given the increases in the state and national unemployment rates, the estimated loss of 1,200 jobs that is expected to result from a merger couldn't come at a worse time.

The Philadelphia Inquirer has also urged rejection of the Blues merger, as has the Pennsylvania Senate Banking and Insurance Committee.

The final decision is up to state Insurance Commissioner Joel Ario, a Rendell appointee.

Read the full editorial at the newspaper's Web site.