HIAA Withdraws from Planned Merger with AAHP

The Health Insurance Association of America issued a press release yesterday announcing the organization's withdrawal from merger discussions with the American Association of Health Plans. According to the release, while the groups will continue their united effort on major health policy issues "of common interest and concern," HIAA will remain a "separate organization" headed by President Chip Kahn. HIAA offered no explanation for its decision to abandon merger discussions (HIAA release, 12/12). Just last week, industry sources reported that HIAA and AAHP had "agreed in principle" to the merger, a move "initiated" by HIAA. While both HIAA's and AAHP's boards signed a "memorandum of intent to merge" last week, the groups still had to resolve differences over "thorny personnel issues," sources said. The merger would have brought together two of the "most powerful" health care industry lobbies, with a combined budget of nearly $45 million. Under the terms of the merger, AAHP President Karen Ignagni would have headed the new organization (Sarasohn/Morgan, Washington Post, 12/7).