It appears that the brains at Highmark and Independence Blue Cross have kept their words, uttered emphatically in July 2008, when asked what they would say to loss of the “Blue Cross” brand were they allowed to merge.

IFAwebnews.com is reporting the two largest health insurers in the state will withdraw their merger proposal rather than face the loss of the Blue Cross brand. What value is there to “Independence” without the “Blue Cross?” Apparently little, or so it would seem, given what has happened today.

After nearly two years, the big losers now are the people who will have to foot the bill for the efforts to consolidate, which included regular meetings among staff at both shops seeking ways to integrate information technology, forms, practices, policies and redundant job functions.

The big winner is Joel Ario, Pennsylvania’s insurance commissioner, who apparently gave the companies a preview of his decision recently. By doing so, he avoided ruling on a no-win situation. No matter what he ruled, someone was going to be upset. Not now.

Ario’s smart political move takes any fallout from the situation off his back and places it in the hands of Highmark CEO Kenneth Melani and IBC CEO Joseph Frick.

It also cements Ario’s stature as an astute politician, something the governor needs to expand his health care initiatives and the insurance industry is going to have to get used to.