The State : Health Plans Seek Merger

Kaiser Permanente Medical Care Program, the nation’s largest prepaid health plan, and Health Insurance Plan of Greater New York, the second largest such group, have announced plans to seek a merger. If successful, the merger would place 5.5 million members in 12 states and the District of Columbia under one program. The two nonprofit firms agreed to hold merger talks in the wake of a recent influx of for-profit companies into the prepaid health care field, a Kaiser spokesman said. Kaiser officials believe the merger would add credence to the Oakland-based Kaiser’s nonprofit, large-scale approach to health care. Robert Biblo, president of the New York firm, said the merger would give his group access to Kaiser’s larger credit line and allow it to borrow more for hospital construction.