Highmark Inc. and Independence Blue Cross have announced plans to merge.
Highmark, Pittsburgh, the holder of Blue Cross and Blue Shield licenses for western Pennsylvania, generated $9.8 billion in revenue in 2005 by covering 4.1 million Pennsylvania residents, and Independence Blue generated $10 billion in revenue by covering 2.6 million Pennsylvania residents and 800,000 residents of other states.
Together, the 2 nonprofit companies provide coverage for more than half of Pennsylvania’s 12 million residents.
The companies did not put a price on their proposed deal, but other companies involved in similar deals have had to compensate the public for purchasing nonprofit company assets by making contributions to charity.